Photographer: Susana Gonzalez/Bloomberg

Banco del Bajio Revives Plans for an IPO

  • Mexican bank is seeking to raise as much as $300 million
  • BanBajio plans to list shares on Mexico’s stock exchange

Banco del Bajio has revived plans for an initial public offering on Mexico’s stock exchange that it had initially been preparing in 2014, according to people familiar with the matter.

Shares may be sold as early as May and the offering could raise between $250 million and $300 million, said one of the people, who asked not to be identified because the matter is private. Citigroup Inc. and Morgan Stanley are leading the underwriting of the deal, which is still being solidified and plans could change, the people said.

BanBajio, as the Guanajuato-based company is known, is Mexico’s eighth-biggest bank by loans outstanding, according to data from Mexico’s banking and securities regulator. It was preparing a $150 million stock offering in 2014, local media reported at the time. That deal never panned out.

A listing would come as investors shrug off U.S. election-related concerns and more companies consider IPOs in Mexico. Another Mexican lender, Banca Mifel, which is backed by Advent International, is also considering an IPO, people familiar with the matter said earlier this week. And Nexxus Capital-backed Taco Holding is seeking to raise $100 million by going public in the third quarter of this year, CEO Javier Rancano said Thursday.

Citigroup spokesman Robert Julavits declined to comment. Akhilesh Raina, a spokesman for Morgan Stanley, didn’t immediately comment. Representatives for Banco del Bajio didn’t immediately respond to phone and email messages seeking comment.

Mexico’s benchmark equity index has erased losses since U.S. President Donald Trump’s election and is up 6.7 percent this year.

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