Grupo Aeroméxico's IPO

Overview of Grupo Aeroméxico's IPO

Grupo Aeroméxico, S.A.B. de C.V., Mexico's flagship airline and the country's only full-service carrier offering long-haul wide-body flights, is preparing for a dual listing on the New York Stock Exchange (NYSE) and the Mexican Stock Exchange (Bolsa Mexicana de Valores, BMV). This marks the airline's return to public markets after delisting in 2022 following its emergence from Chapter 11 bankruptcy protection amid the COVID-19 crisis. The IPO process began with an initial SEC filing in May 2024, followed by a registration statement in September 2025, and terms were unveiled in mid-October 2025.
The offering is backed by major investors, including Apollo Global Management (a key shareholder post-restructuring) and Delta Air Lines (which holds a 20% stake and has agreed to a four-year lockup on its shares). Aeroméxico, founded in 1934 and a co-founder of the SkyTeam alliance, operates flights to every major Mexican city and 52 international destinations across 22 countries, with a focus on high-demand leisure routes like Cancun and Puerto Vallarta.Key IPO Details

Aspect	Details
Ticker Symbol	AERO (NYSE for American Depositary Shares/ADS; BMV for ordinary shares)
Shares Offered	- U.S.: 11.73 million ADS (each representing 10 ordinary shares) - Company: 7.39 million ADS (primary) - Selling shareholders: 4.33 million ADS (secondary) - Mexico: 7 million new shares + 20.46 million from selling shareholders
Price Range	$18–$20 per ADS
Expected Proceeds	- U.S. IPO: $223–$234 million (midpoint: $222.8 million) - Total with private placement: Up to $314 million (includes $25 million from PAR Investment Partners at a 5% discount to IPO price)
Valuation Target	Up to $2.92 billion (fully diluted)
Underwriters	Joint book-runners: Barclays, Morgan Stanley, J.P. Morgan, Evercore ISI Other book-runners: Apollo Global Securities, Citigroup, Deutsche Bank Securities, Goldman Sachs, BNP Paribas, BTG Pactual, Santander
Expected Timeline	- Roadshow: Late October 2025 - Pricing: Potentially week of October 28, 2025 - Trading start: Shortly after pricing (exact date TBD)
Use of Proceeds	Primarily for general corporate purposes, including debt repayment and fleet expansion; secondary shares benefit selling shareholders

Financial Highlights (Trailing 12 Months Ended June 30, 2025)Aeroméxico reported strong post-restructuring performance, driven by robust demand in the Mexico-U.S. transborder market and leisure travel:

• Revenue: $5.42 billion
• Net Income: $360.8 million
• Market Share: 36.3% of total passengers to/from/within Mexico (per Mexico's Federal Aviation Agency)
• Fleet: Operates ~140 aircraft, with plans for growth in wide-body international routes.

Market Context and RisksThis IPO follows LATAM Airlines' $456 million NYSE relisting in July 2024, signaling recovery in Latin American aviation. Mexico's 2.8% GDP growth in 2025 and rising tourism support demand, but investors should note risks like fuel price volatility, geopolitical tensions affecting travel, and currency fluctuations (peso vs. USD). The dual U.S.-Mexico structure aims to attract global capital while relisting locally.