Slim’s Mexico Apple Retailer Sanborns Gains on Trading DebutJonathan J. Levin
Grupo Sanborns SAB, Carlos Slim’s Mexican retailer of Apple Inc. computers, rose on its first day of trading after an initial public offering yesterday that was priced in the bottom half of its projected price range.
The stock rose 1.6 percent to 28.46 pesos at the market’s close in Mexico City. The offering priced yesterday at 28 pesos a share, within the range of 27 pesos to 32 pesos estimated in earlier filings. The benchmark IPC index of 35 Mexican companies advanced 0.2 percent today.
The stake in Sanborns was sold by Grupo Carso SAB, Slim’s third-biggest company. The 73-year-old is the world’s richest man with an estimated fortune of about $78 billion, according to the Bloomberg Billionaires Index.
The IPO raised 10.5 billion pesos ($825 million), and the total could climb to 12.1 billion pesos including an overallotment option for underwriters, according to a filing today. The IPO, announced almost a month ago, landed as the benchmark index yesterday had its biggest drop in three months.
The company plans to use part of the proceeds to build new retail stores and remodel others, according to the prospectus. The billionaire’s retailer operates Sears department stores in Mexico and iShops that sell Apple computers, phones and tablets. It also runs the Sanborns brand of shops and restaurants.