Mexican low-cost carrier VivaAerobus will launch an initial public offering on 11 February on the Mexican stock exchange, partly to finance its recent order of 52 Airbus A320 aircraft.
With a share price to be fixed in the range between 21 and 25 Mexican pesos ($1.58 to $1.88), the public share offering is expected to raise approximately between $180 million and $210 million, which will be used to strengthen its financial structure ahead of its recently announced fleet renewal and expansion plan.
The eight-year-old Monterrey-based airline announced its Airbus order in October 2013. It will replace its 19 Boeing 737-300s with 40 A320neos and 12 current generation A320s. The order also includes options for another 40 A320neos.
VivaAerobus is Mexico's third airline filing for an IPO in three years, as SkyTeam carrier Aeromexico debuted on the Mexican stock exchange in 2011, followed by Volaris last year. Interjet has also indicated IPO plans for later this year.