Apollo-backed Aeromexico raises about $223 million in long-awaited US IPO

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(Reuters) -Apollo-backed Grupo Aeromexico raised $222.8 million in its long-awaited U.S. initial public offering on Wednesday, setting the stage for the Mexican airline’s public market comeback nearly four years after it exited bankruptcy. 

Optimism around artificial intelligence and falling interest rates have pushed stock market valuations to record highs, fueling hopes for an IPO rebound despite fresh headwinds from Washington’s political gridlock after U.S. tariffs.

Aeromexico and some of its existing shareholders sold 11.7 million American Depositary Shares at $19 each, within its marketed range of $18 to $20.

The IPO valued Aeromexico at $2.77 billion ahead of its debut on Thursday, when it will begin trading on the New York Stock Exchange under the ticker symbol “AERO”.

Backed by alternative asset manager Apollo Global and U.S. carrier Delta, the company first publicly filed for a U.S. listing last year, before delaying those plans.

CEO Andres Conesa had dismissed listing plans back in February, at the onset of U.S. President Donald Trump’s tariffs on Canada and Mexico.

Its debut comes as the Trump administration pursues a crackdown against Mexican airlines, citing competition issues.

Trump’s Department of Transportation has revoked approval for several routes by Mexican carriers into the U.S., along with a campaign to unwind Delta and Aeromexico’s joint venture that lets the carriers coordinate scheduling, pricing and capacity for U.S.-Mexico flights.

A legacy airline, Aeromexico had long been a presence on Mexico’s main stock exchange before delisting as part of Chapter 11 bankruptcy proceedings, which it exited in 2022.

Barclays, Morgan Stanley, J.P. Morgan and Evercore are the joint lead book-running managers.

(Reporting by Ateev Bhandari and Abu Sultan in Bengaluru; Editing by Alan Barona, Harikrishnan Nair and Mrigank Dhaniwala)