Mexico's Skyteam airline Aeromexico has successfully launched its first public share offering on the Mexican Stock Exchange, raising over $320 million in fresh capital.
According to Aeromexico the IPO was oversubscribed at a final price of 31 pesos ($2.64) per share, with demand doubling the available shares. As a result, the over-allotment option was exercised and the rest was prorated among the investors.
The shares floated represent a little over 17% of Aeromexico´s total capital, which would give the airline a total market value of around US$1.9 billion.
Aeromexico, which recorded a profit in 2010 after years of operating in the red, has been benefitting from the demise of its main competitor Mexicana after the carrier ceased operations and entered creditor protection in August.
Aermexico states it plans to use the proceeds of the IPO "to finance expansion projects", including new aircraft. Its group of companies includes Aeromexico Connect, Aeromexico Travel and maintenance arm EMA.