Apollo-backed Aeroméxico seeks up to $2.9 billion valuation in US IPO

(Reuters) -Grupo Aeroméxico said on Friday it was targeting a valuation of up to $2.92 billion in its U.S. initial public offering, as the Mexican carrier looks to go public again after over two years. Mexico City-based Aeroméxico and some of its existing shareholders are seeking up to $234.5 million by offering 11.7 million American Depositary Shares priced between $18 and $20 each. Mature companies often seek a return to public markets after a successful reorganization under bankruptcy. Aeroméxico filed for Chapter 11 bankruptcy protection in 2020 with $2 billion in debt, as the pandemic hammered travel demand. Backed by alternative asset manager Apollo Global and U.S. carrier Delta, Aeroméxico has since bounced back after emerging from bankruptcy in 2022. Private investment fund PAR Investment Partners intends to purchase $25 million of Aeroméxico shares in a concurrent private placement at a per share price of 95% of the IPO price. Aeroméxico is one of the older names in the IPO pipeline, having publicly filed paperwork in May 2024. Chile-based LATAM Airlines returned to the New York Stock Exchange in July 2024 after a $456 million IPO. PUBLIC MARKETS RETURN Founded in 1934 as Aeronaves, the legacy airline was nationalized by the Mexican government in 1959. It started operating under the commercial name "Aeroméxico" in 1971. Aeroméxico was state-owned for decades until 2007, when an investor consortium led by Citigroup acquired it for about $250 million following a fierce bidding war against the Saba family. The full-service carrier initially went public in 2011 and traded on the Mexican Stock Exchange (BMV) until 2022, when it delisted as part of its bankruptcy restructuring. Aeroméxico, focused on business and leisure passengers, competes with low-cost carriers Volaris and Viva Aerobus. Barclays, Morgan Stanley, J.P. Morgan and Evercore are the joint lead book-running managers. Aeroméxico plans to list on the New York Stock Exchange under the symbol "AERO." (Reporting by Anuj T and Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)

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