Hoteles City Express SAB (HCITY*), Mexico’s third-largest hotel chain, tumbled in its first day of trading after pricing its initial public offering at the bottom of its projected range.
The shares fell 5.2 percent to 22.75 pesos at 1:11 p.m. in Mexico City. The benchmark IPC index of 35 Mexican companies slipped 0.2 percent.
Hoteles City raised 2.54 billion pesos ($200 million) in its IPO, or as much as 2.92 billion pesos if underwriters exercise an overallotment option, the Mexico City-based company said in a filing today. The price per share was 24 pesos. In earlier filings the company had estimated the shares would fetch as much as 29 pesos.
The price “is evidence that demand wasn’t strong and confirms our view that the offering multiples weren’t attractive,” Jorge Placido, head of fundamentals-based analysis at Vector Casa de Bolsa SA, said in an e-mailed report today.
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