Alfa Autoparts Unit Nemak Said to Raise $684 Million in IPO

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Nemak SAB sold shares in Mexico’s biggest initial public offering since 2013, according to people familiar with the deal, tapping into growing demand for investments in the nation’s autoparts industry.

The unit of Alfa SAB, based in San Pedro Garza Garcia, Mexico, priced the shares Tuesday at 20 pesos each, said the two people who asked not to be named because the details haven’t been made public. That compares with the company’s forecasted range of 20 pesos to 23 pesos. At 10.75 billion pesos ($684 million), it’s the biggest IPO since Grupo Lala SAB’s $1.1 billion deal in September 2013.

Nemak, part-owned by Ford Motor Co., is scheduled to start trading Wednesday on Mexico’s stock exchange. The company, which claims that one in four light vehicles uses its parts, generated 9.3 billion pesos in adjusted earnings before interest, taxes, depreciation and amortization last year.

The deal was managed by Goldman Sachs Group Inc., JPMorgan Chase & Co., Deutsche Bank AG, local units of Citigroup Inc., HSBC Holdings Plc and Banco Bilbao Vizcaya Argentaria SA. It was more than three times oversubscribed, according to one of the people.

Alfa declined to comment. The parent company’s shares have fallen 8.8 percent this year, compared with a 4.4 percent gain of Mexico’s benchmark IPC stock index.

Nemak is the second Alfa unit to hold an IPO after petrochemicals producer Alpek raised $851 million in 2012. Alfa has said it may also hold an offering for its processed food unit, Sigma Alimentos SA.

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