Aeromexico Seeks US$314 Million In Dual IPO For Its Return To Public Markets
Grupo Aeromexico SAB, backed by Apollo Global Management Inc, is preparing a long-awaited return to public markets with a dual IPO and private placement that could raise as much as US$314 million, marking a major comeback more than three years after emerging from bankruptcy.
Bloomberg reported that the Mexican flag carrier plans to list its shares concurrently on the Mexican Stock Exchange and the New York Stock Exchange under the ticker “AERO”, offering American Depositary Receipts (ADRs) priced between US$18 and US$20 each, according to a regulatory filing on Oct 17.
Aeromexico is offering ADRs representing 73.94 million ordinary shares, while existing investors — including Apollo and board members Eduardo Tricio Haro and Valentín Diez Morodo — are selling ADRs tied to 43.3 million ordinary shares. The combined offering could value the airline at over US$2.9 billion at the top of the price range.
In a separate move, PAR Investment Partners LP will invest US$25 million through a private placement at a 5% discount, while Delta Air Lines Inc, which owns a 20% stake in Aeromexico, has agreed to a four-year lockup on its holdings.
The IPO marks a milestone for Mexico’s recovering capital markets, following a prolonged dry spell that saw only a handful of major listings, including July’s Fibra Next REIT IPO, the country’s biggest in seven years.
For Aeromexico, this marks a full-circle moment since its Chapter 11 bankruptcy in 2020, which led to a major restructuring and its emergence from court protection in early 2022.
The offering comes amid renewed turbulence in the aviation sector, as Aeromexico and Delta fight a US government order to dissolve their transborder alliance. Still, the carrier’s return to market reflects renewed investor confidence in both Mexico’s economic outlook and the airline’s post-restructuring trajectory.
Barclays, Morgan Stanley, JPMorgan Chase, Evercore and Apollo Global Securities are managing the offering, with trading expected to begin soon on both exchanges.
