Mexican low-cost carrier Volaris debuted on the Mexican and New York stock exchanges today, raising $346 million in its initial public offering (IPO).
The carrier filed for an IPO in June through both a Mexican and international offering. The Mexican offering, consisting of more than 61 million series A shares, was priced at 15.51 Mexican pesos ($1.20) each, says the airline today. The international offering, in the form of more than 226 million ordinary participation certificates (CPO), was priced at $12 per share.
The CPOs are being issued in the form of American depositary shares (ADS), and each ADS represents 10 CPOs, while each CPO represents a financial interest in one series A share of the airline's common stock, says Volaris.
Deutsche Bank Securities, Morgan Stanley and UBS Securities acted as international joint book runners. The three institutions and Santander Investment Securities acted as joint local bookrunners. Santander, Evercore, Barclays Capital, and Cowen and Company acted as international co-managers, while Evercore and Barclays served as local co-managers.
Volaris has said it aims to use the IPO proceeds to pre-pay principal and interest of existing loans, as well as to fund pre-delivery payments of aircraft.