Volaris IPO Expects Sept Landing

Mexico’s Volaris is expecting to price its IPO in late September, according to people following the transaction. The amount is still to be determined, with a minimum $100m specified in the initial regulatory documents. The Airline registered its initial documents in June, but like many filing around that time, has apparently elected to wait as market conditions have become more challenging. Brazil’s Azul is another airline in this pack. A few LatAm ECM deals still remain to price in the July window, with Mexico’s Fibra Shop targeting an IPO of about MXP5.8bn ($463m) pricing Tuesday. Peru’s Grana y Montero is also scheduled to price Tuesday a follow-on representing the debut of its US ADS shares, which should raise more than $400m. Volaris also plans an ADS portion, as it raises funds for general corporate purposes and to repay debt. Deutsche Bank, Morgan Stanley, UBS, Evercore and Santander are managing the Volaris sale, joined by Barclays and Cowen on the international portion. Issuers have been encouraged by deals for the likes of Vesta, Inbursa, OMA and Banorte getting done in recent weeks. However those transactions are follow-ons, with the only recent IPO, CPFL Energias Renovaveis, needing a guarantee from lead managers and a commitment from a pension fund to get the deal done, raising BRL1.04bn ($462m). Renovaveis shares lost 3.92% in their first official day of trading Friday to close at BRL12.02.