Fibra Next is Mexico’s largest local IPO since 2018

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Fibra Next, which includes properties owned by Latin America’s largest real estate investment trust, is pushing ahead with plans for an initial public offering worth 15 billion pesos ($864 million), the biggest local IPO since 2018.

The company aims to sell up to 277.8 million shares known as CBFIs in the offering scheduled for Nov. 28 at around 54 pesos each, according to a filing on Mexico’s stock exchange website. The offer includes an over-allotment option that would bring the total raised to as much as 20.7 billion pesos, or roughly $1.2 billion, from investors in the US, Mexico, and other markets, the document shows.

Fibra Next includes properties owned by Fibra Uno Administrations SA and another company controlled by the REIT’s founders. The IPO was originally planned to raise as much as $1.5 billion earlier this year but was toned down after the firm struggled to drum up enough investor interest at the valuation it was seeking. Reuters first reported the news of the IPO.

Fibra Next is seeking to tap into the buzz around “nearshoring” — the trend where manufacturers are moving to Mexico to be closer to the US market. The country has seen a string of recent follow-on offerings by companies connected to manufacturing, specifically from companies with properties and operations in the north of Mexico, with links to a boom in new factories close to the US border.

Fibra Next’s properties are mostly located in the center of the country and are more oriented toward logistics than manufacturing.

The CBFI shares, also known as Real Estate Trust Stock Certificates, are securities whose returns are linked to operating income from real estate holdings, according to Fibra’s website.

Source: El Financiero

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