Alfa Is in Talks With Banks to Revive One of Mexico's Long-Awaited IPOsBy
Citi, BofA, JPMorgan and GS said among banks picked for deal
Sigma could raise more than $500 million in September offering
Mexican conglomerate Alfa SAB picked banks to work on an initial public offering of its meat-packaging unit Sigma Alimentos, reviving plans that started as far back as 2013, according to two people with knowledge of the matter.
Alfa hired Citigroup Inc., Bank of America Corp., JPMorgan Chase & Co. and Goldman Sachs to help prepare an offering of Sigma on Mexico’s stock exchange, which could raise more than $500 million, said the people, who asked not to be identified because the deal is private. Banco Bilbao Vizcaya Argentaria SA and Banco Santander SA are also helping, said the people, who added that shares could be offered as soon as September.
Spokesmen from JPMorgan and Citi declined to comment. Spokeswomen for Goldman Sachs and Bank of America didn’t immediately comment and representatives for Alfa, BBVA and Santander didn’t respond to requests for comment.
Alfa has been mulling an IPO of Sigma, the maker of Fud ham, since at least 2013. Alfa executives reiterated in July that the company planned to eventually list all of its units but said they had no news on the timing of a Sigma IPO.
The long-awaited offering would come after Sigma de-listed shares from Mexico’s stock exchange in 2000. Stock sales in Mexico are bouncing back now, with issuers rushing to take advantage of investor demand for deals and a period of low volatility before the country’s 2018 presidential election.
Shares of Alfa rose 3 percent to 24.52 pesos at the close Wednesday in Mexico City.
Sigma, which produces and markets packaged deli meat, cheese and yogurt, among other foods, accounted for 36 percent of Alfa’s revenue in the second quarter, according to data compiled by Bloomberg.