October 10, 2013
Mexico's Lala to price initial public offering next week
Mexican dairy company Lala plans to price its almost US$1 billion initial public offering (IPO) on October 15, as it is seeking to raise capital to expand its distribution and prepay some bank debt.
Lala has a well-recognised brand name in Mexico with just over half of the country's market for milk and cream and about a third of the market for pre-packaged cheese, according to AC Nielsen figures cited by the company.
"Lala is one of the most public companies in Mexico without being public," company President Eduardo Tricio told potential investors.
The company is selling a stake of over 18% and plans to issue up to 511,111,111 shares, including an over-allotment option, at a price of between MXN23.50 (US$1.78) and MXN27.50 (US$2.10) a share.
The IPO could raise up to MXN13 billion (US$996.33 million). The dairy company's IPO comes amid a record rash of stock listings in Mexico.