Grupo Lala, a Mexican dairy company, is set to raise $863m through an initial public offering (IPO) this month to strengthen its operations and prepay bank loans.
The company is offering 444 million shares in an offering that is reportedly expected to price between MXN23.5 ($1.79) and MXN27.5 ($2.09) per share, reported The Wall Street Journal citing a presentation filed with the local exchange.
The amount would be increased to about $992m with a 15% overallotment, assuming the shares price in the middle of the expected range.
Scheduled for 15 October, the IPO would place the company with an 18.5% market float.
Lala operates 17 dairy facilities and 161 distribution centers in Mexico. In 2012, it generated sales of $3bn with net profit of $175m and operating cash flow of $358m.
In the presentation, the dairy firm claimed that it holds 53% share in Mexican milk sales last year and it was a major supplier of cream and prepackaged cheese with second leading position in yogurt sales.
