Chedraui Debut Equity Trades Up

Mexico’s first IPO in nearly 2 years, Grupo Comercial Chedraui, traded up 5.4% Friday, after pricing in the wee hours of the morning to raise MXP5.23bn. The shares closed at MXP35.85, according to Dow Jones, on a day when the Mexican bolsa fell 0.53%. Chedraui, the previously family-owned retailer, sold 139.4m primary and 15.3m secondary shares at MXP34, the lower end of a MXP32-MXP40 targeted range. The total includes a 19.9m share overallotment. Mexican investors accounted for 54.8m shares, or 45% of the sale. Chedraui raised the funds to refinance debt and for other general corporate purposes. Banamex and BBVA Bancomer led the Mexican portion of the deal, with Citi and Credit Suisse on the international portion. The issuer is the fourth-largest retailer in Mexico, and was founded in 1920 by Lazaro Chedraui and operates the Chedraui and Super Chedraui chains in Mexico and El Super in the US. In 2005 it acquired Carrefour’s Mexican operations.