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Aeromexico is valued at $2.8 Billion in NYSE debut, four years after bankruptcy.

The shares of Grupo Aeromexico, which is backed by Apollo, rose 0.84% on their New York Stock Exchange debut Thursday. This valued the Mexican airline near $2.8 billion nearly four years after it emerged from bankruptcy.

The opening price of shares in the company was $19.16, which is just above the $19 issuance price.

Aeromexico, along with some of its current shareholders, sold 11,7 million American Depositary Shares in an initial public offer on Thursday. The price was at the midpoint between its advertised range of $18 and $20. This raised $222.8 millions.

The listing is part of a rebound in the IPO markets following a slowdown triggered primarily by President Donald Trump’s changing trade policies, and increased market volatility.

The Federal Reserve has cut interest rates and boosted the demand of investors for new offerings. However, a prolonged shutdown in the government has caused delays.

Aeromexico debuts also coincides with the Trump administration.

Crackdown on Mexican Airlines over Competition

Investors are cautious and awaiting regulatory clarity.

The U.S. Department of Transportation is fighting a legal battle over an order to cancel several Mexican airline routes.

Joint venture between Delta and Aeromexico

This allows the carriers to coordinate pricing, scheduling and capacity.

Aeromexico had applied for an American listing in the past year, backed both by U.S. airline Delta and alternative asset manager Apollo Global.

In February, CEO Andres Conesa stated that

The market conditions at the time were not optimal for listing.

Mexico's legacy airline

Aeromexico filed Chapter 11 bankruptcy in 2020

After the pandemic, travel demand was crushed and its

Restructuring in January 2022

After lowering costs, and upgrading to larger, more efficient planes, the company will be able to afford this.

Barclays was the lead book-running manager for the listing. J.P. Morgan, Evercore, and Morgan Stanley were also involved. Reporting by Prakhar Shrivastava, Bengaluru. Editing by Sahal Muhammad and Shakesh Kuber.

(source: Reuters)