Mexico Petrochemical Maker Idesa Prepares Possible IPO Next Year

Mexican petrochemical-maker Grupo Idesa SAB is preparing for a possible initial public offering in 2016 as it looks to finish funding its share of a $5 billion plant.

The company may also raise the cash by doing a capital increase among current shareholders or selling non-strategic assets, board member Patricio Gutierrez said in an interview Wednesday. The company isn’t considering debt sales.

Idesa has a 25 percent stake in the factory being built in Veracruz state in a joint venture with Brazil’s Braskem SA.

“Increasing our leverage is something that we’re being careful about,” Gutierrez said. “We foresee an increase in our cash flow by late 2016 or early 2017.”

Idesa’s sales in 2014 totaled $700 million, Gutierrez said. The company issued $300 million of bonds due 2020 in 2013.

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