Less than three months after Aeromexico's initial public offering (IPO), the attempt of Mexico's second largest airline Interjet to place shares at the Mexican and international stock exchanges has been postponed.
Interjet confirms that the IPO that was planned for 30 June has been "postponed", citing "adverse market conditions", without providing further explanations.
However, a source at a European Investment Bank based in Mexico City tells Air Transport Intelligence that the local financial community considered Interjet's target price range of between 21 and 25 pesos "overambitious" as it would have valued the five-year old airline close to one billion dollars, more than half of the market valuation obtained by market leader Aeromexico.
There have been a number of negotiations going on with institutional investors, but "none seemed to consider the target price attractive enough to commit" to the tranches assigned to them, the source says.
Interjet, which has built a 25% domestic market share in Latin America's second most important market after Brazil, planned to invest the funds obtained in the IPO in expanding its fleets of Airbus A320s, acquiring new Sukhoi Superjet 100 aircraft and improving its overall financial situation.