Aeroméxico’s Stock Returns to US and Mexican Markets
Aeroméxico, Mexico’s largest airline, has made a triumphant return to the stock market with an Initial Public Offering (IPO) worth 5,882 million pesos. The company’s shares closed the day at 36.20 pesos, a 2.43% increase from the placement price of 35.34 pesos on the Mexican Securities Exchange.
In addition to the public offering, Aeroméxico also issued American Depositary Shares (ADS), which advanced 7.11% to close at 20.35 US dollars in New York. Each ADS represents ten shares of Aeroméxico.
Strategic Investments and Fleet Expansion
With the funds raised, Aeroméxico plans to expand its fleet, a strategic move that strengthens the company’s operational capacity and service while addressing growth and modernization needs in the sector. Furthermore, investments will be made in customer service infrastructure, aiming to optimize logistical efficiency, security, and personalized attention, as well as maintain its fleet’s obligations.
Aeroméxico reported that there was no oversubscription in the Mexican offering, and Delta Airlines, one of its major shareholders and long-term partners, did not participate in the global offering but signed a four-year non-disclosure agreement.
Optimism and Investor Demand
Janneth Quiroz, director of Analysis at Monex Casa de Bolsa, stated that the company’s return to the stock market was driven by optimism among investors, who showed significant demand for the offered securities.
This reflects “greater confidence, institutional support, and a strategic line towards the company’s recovery and growth,” Quiroz added.
Quiroz explained that the stock offering opened more opportunities for investors, such as a strategy between airlines listed in the US and Volaris, which is listed locally.
In Mexico, the return to the stock market aids in company listings and coincides with Fibra Next’s arrival. For Aeroméxico, the IPO benefits its financial structure with the obtained resources and allows for fleet renewal, route expansion, and short-term and long-term financing synergies.
Aeroméxico’s Journey Through Chapter 11
Aeroméxico first appeared on the Mexican stock exchange in 2011. Delta Airlines increased its stake to 49% of the company’s shares.
Following the COVID-19 pandemic, Aeroméxico sought protection under Chapter 11 in the US bankruptcy law.
In 2022, Aeroméxico concluded a reorganization and restructuring process in which several shareholders, primarily Eduardo Tricio of Grupo Lala, reduced their stake in the newly formed company led by Apollo and Delta.
Subsequently, Silver Point Capital, Strategic Value Partners, the Actinver Trust, and PAR Investment Partners became shareholders. The company’s stock was offered to shareholders around 11% of the shares representing its social capital.
Impact on Competitors and Aeroport Authorities
Volaris, Aeroméxico’s low-cost competitor, saw its shares drop 0.71% to 12.52 pesos on the BMV. Year-to-date, Volaris’ stock value has decreased by 19.90%, with a market capitalization of 14,598 million pesos.
The three airport operating groups listed locally also ended the session with losses. Grupo Aeroportuario del Sureste (Asur), which operates Cancun and Merida airports, fell 0.52% to close at 574.36 pesos per share. Asur’s stock value has increased by 7.42% year-to-date, with a market capitalization of 172,308 million pesos and ranking 14th among the most valuable companies in the Mexican Stock Exchange Index.
Grupo Aeroportuario del Pacífico (GAP), operating 12 airports in Mexico and 2 in Jamaica, declined 0.27% to 403.36 pesos. GAP’s stock has risen by 10.05% year-to-date, with a market capitalization of 203,808 million pesos.
Lastly, Grupo Aeroportuario del Centro Norte (OMA) shares fell 1.92% to 244.30 pesos. OMA, which operates Monterrey and Acapulco airports, has seen its stock rise 36.13% year-to-date, with a market capitalization of 95,304 million pesos.
