Grupo Lala, a Mexican dairy company, has announced plans to launch an initial public offering (IPO) to strengthen its distribution operations and prepay bank loans.
The company also plans to use the proceeds to pursue acquisition of additional brands, to bolster its presence in Mexico, Central America and abroad, according to a preliminary prospectus filed with the stock exchange.
JPMorgan Chase, Morgan Stanley Mexico and Banco Bilbao Vizcaya Argentaria (BBVA) have been appointed to manage the sale.
Lala could raise up to $600m through the IPO, reported Thomson Reuters' IFR citing a source familiar with the matter.
The dairy firm holds about half of the share in Mexico's milk market along with competitor Ganaderos Productores de Leche Pura.
For the first half of 2013, Lala reported a net profit of MXN985m ($77m), while net sales were MXN20.96bn ($1.63bn).
