Mexican operator Aeromexico has unveiled details of a offering through which it will sell the equivalent of nearly 145 million shares.
The issue will comprise some 11.7 million American depositary shares – each representing 10 common shares – in the USA, plus a further 27.4 million common shares in Mexico.
Aeromexico intends to list the American depositary shares on the New York stock exchange, while the common shares will be listed on the Mexican stock exchange BMV.
The company says the overall arrangement will comprise a primary and secondary offering of shares and ADSs.
About 63% of the ADSs and 25% of the shares will be covered by the primary offering.
The estimated price range for the ADSs is $18-20 and the equivalent of $1.80-$2.00, in Mexican currency, for the common stock.
This would value the overall combined issue at $260-289 million.
Aeromexico says the offering results from the sale of stock by a number of the company’s shareholders.
Investment firm Apollo which, in co-operation with Banco Actinver, has 22.4% of Aeromexico, is among those divesting part of their holding, along with a group of investors listed as SVP Funds. Parties with smaller interests as well as some Aeromexico directors are also taking part.
But SkyTeam partner and shareholder Delta Air Lines, which holds 20% of Aeromexico’s capital, is not among those participating. Delta has agreed to enter a four-year lock-up.
Aeromexico says it will also enter into an agreement with PAR Capital Management under which the US-based investment fund will purchase $25 million in common shares, at 95% of the offering price.
This private placement will close around the same time as the settlement of the offering.
Underwriters will have 30-day option to purchase up to 2.17 million additional ADSs from the selling shareholder, says Aeromexico.
