September 27, 2013
Mexico's Lala to launch initial public offering of shares
Mexican dairy company Lala plans to launch a long-awaited initial public offering of shares internationally which will be used to expand its distribution, prepay some bank debt and some acquisitions.
Mexican companies are selling shares at unprecedented rates even as the wider economy slows, breathing new life into what has historically been a limited stock market.
The company may consider acquisitions to expand in Mexico, Central America and abroad, according to a prospectus filed with Mexico's stock exchange.
Lala, which did not say how much of the company it plans to sell in the offering, said it had revenue of MXN40.345 billion (US$3.1 billion) in 2012. Core profit, or earnings before interest, taxes, depreciation and amortisation, was MXN4.764 billion (US$364 million).
Lala, which earlier this year spun off its US business known as Borden Dairy, did not say when the offering would price.
JPMorgan, Morgan Stanley and BBVA Bancomer are bookrunners on the Lala offer, the prospectus said.
Mexican companies have been issuing equity capital at an all-time record rate this year, raising more money than in the previous four years combined.
Lala will be the ninth IPO this year in Mexico.