Elementia SAB, the construction materials company owned by Mexican billionaires Carlos Slim and Antonio del Valle Ruiz, surged on its first trading day after raising about $215 million in a sale that fell short of target.
The stock climbed 11 percent to 18.89 pesos in Mexico City after Elementia priced shares Thursday at 17 pesos each. The benchmark IPC index rose 0.8 percent.
China’s equity meltdown and turmoil in the euro zone helped reduce demand for Elementia’s initial public offering, according to Gerardo Copca, an analyst at Metanalisis SA. Concern eased Friday as the Asian nation intervened to support stocks and global markets signaled growing faith in Greece’s ability to clinch a bailout.
“Investors wait for opportunities,” Copca said in a telephone interview. “The price of 17 pesos is a good one, and that’s what’s pushing the stock.”
Not counting an option to increase shares, the company raised 3.4 billion pesos, below the 4.5 billion pesos based on the midpoint of the target range of 20 pesos to 25 pesos.
Elementia said it will use proceeds raised over the next 24 months mainly to bolster its cement division, according to a statement from the stock exchange. An investor-relations official for the Mexico City-based company didn’t respond to requests for comment.