Volaris Lays out IPO Plans

Mexican low-cost airline Volaris is planning to IPO, in a transaction that will include US ADS, according to regulatory filings. The size and timing have not been determined for the deal, which will include primary shares as well as secondary shares sold by several funds and individuals. The US documents indicate a $100m size, though the sale could end up being larger. Volaris indicated plans to IPO in 2011, and may find conditions this year – a record one so far for Mexican ECM issuance – more acceptable. Filing now sets the airline up for a likely end of June or July sale. Proceeds are marked for general corporate purposes and to repay debt. Volaris booked MXP494m ($39m) Ebitda in 2012, after seeing negative Ebitda of MXP160m in 2011. Deutsche Bank, Morgan Stanley, UBS, Evercore and Santander have been hired to manage, joined by Barclays and Cowen on the international portion. Volaris joins Brazil’s Azul in hoping to IPO before the end of July. Up next in Mexico’s pipeline is an IPO from Hoteles City, pricing June 13 and targeting about $250m.