Grupo Viva Aerobus SAB, Mexico’s fourth-largest airline, will seek to raise about $250 million in its initial public offering, according to two people with direct knowledge of the transaction.
Executives have begun preliminary meetings with potential investors, said the people, who asked not to be identified because the information is confidential. The listing, which would be Mexico’s second airline IPO since September, is likely to take place next month, the people said.
The low-cost carrier said yesterday that it intended to carry out a share sale after announcing a $5.1 billion order in October for 52 Airbus SAS A320 jets to modernize its fleet and improve fuel efficiency. Mexico’s air passenger traffic climbed 8.2 percent in last year’s first 11 months after reaching a record in 2012, according to data compiled by the Communications and Transportation Ministry.
Alejandra Ochoa, a spokeswoman for Viva Aerobus, declined to comment on the size and timing of the transaction.
Shares of competitor Controladora Vuela Cia. de Aviacion SAB, owner of Volaris, have gained 8.4 percent in Mexico City since the company raised about $400 million in September.
Grupo Aeromexico SAB, Mexico’s largest airline, reached its highest price since 2012 this week and has advanced 11 percent this year.
Interjet, Mexico’s second-biggest carrier in 2012, may sell shares this year, Executive President Miguel Aleman Magnani said in November.
Editors: Brendan Walsh and David Papadopoulos.
To contact the reporters on this story: Jonathan Levin in Mexico City at [email protected]; Brendan Case in Mexico City at [email protected] To contact the editors responsible for this story: Ed Dufner at [email protected]; Brendan Walsh at [email protected]