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Mexico sets sights on record year for IPOs

Mexico City, Mexico — Mexico is eyeing a record year for IPOs as the Mexican Stock Exchange continues to list new companies.

Already this year, four companies have listed, reports the Mexico Stock Exchange, raising a combined $2.1 billion in IPOs. However, they anticipate that number could increase to 10 new listings before the year is out.

Sigma Alimentos, Traxion and Discovery Americas have confirmed their IPOs with Sigma aiming to raise 18.5 billion pesos ($1.03 billion) while Traxion expects around 4.32 billion peso. In October, Banco Mifel is expected to launch its IPO, as is the transportation subsidiary of Mexican miner Grupo Mexico.

If all 10 IPOs are successful, Mexico could break its previous 2012 record for amounts raised, which, according to consultancy firm Dealogic, was $6.8 billion, $4 billion of which was driven by the listing of Spanish bank Santander.

Juan Manuel Olivo, head of promotion for the Mexican Stock Exchange, said the IPO spike this year is due mostly to stable economic conditions as well as new business opportunities that require capital and attractive valuations.

He said the Mexican stock exchange has also stepped up efforts to better inform companies of their financing options, which also includes issuing debt and new real estate investment trusts known locally as Fibras.