ABC Aerolineas SA, the operator of low-cost Mexican airline Interjet, plans to raise as much as $1 billion in an initial public offering after backing away from selling shares in 2011.
The owner of Mexico’s No. 2 airline by passengers expects to sell stock after September, Chairman Miguel Aleman said today in an interview in Mexico City. The company scrapped a planned IPO in June 2011 after a slumping Mexican market and higher fuel costs weakened investor demand.
ABC Aerolineas intends to sell as much as 25 percent of the company in the IPO. The airline plans to triple its fleet size to 111 aircraft by 2015 from the current 37, Aleman said.
“Obviously we’re not going to try to be part of the Mexican stock exchange in order to sell a huge stake, or to get just a little bit of money,” Aleman said. “I’d see a time frame after the month of September, more or less.”
The company is expanding and adding routes as it forecasts the country’s air-travel market will expand 50 percent over the next six years as Mexico’s middle class grows, Aleman said.
Aleman said Interjet is discussing its IPO plans with two banks, which he declined to identify as conversations are still private.
Companies from billionaire Carlos Slim’s retail unit to a Mexican Pepsi bottler are lining up to sell shares on Latin America’s second-biggest stock market in 2013 after equity issuers raised a record amount last year.
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