Aeromexico files $314M IPO as Apollo eyes selloff in dual listing

Grupo Aeromexico has launched a dual-equity push that would take the carrier back to public markets, aiming to raise up to $314m through a mix of a primary IPO and a private placement. The move would mark a major step in the airline’s restructuring journey since exiting Chapter 11 in 2022.

The proposed offering contemplates simultaneous listings on the Mexican Stock Exchange and the New York Stock Exchange, with American Depositary Receipts pitched in a range of $18 to $20. Market sources say selling shareholders include private-equity backers, with Apollo Global Management potentially divesting a substantial block — as much as 40.3 million shares — in a secondary component of the deal.

A separately negotiated private placement would see institutional investor PAR Investment Partners buy $25m of paper at a modest discount to the IPO price, providing anchor demand ahead of the retail and institutional bookbuild. At the top of the indicated range, Aeromexico’s market value would exceed $2.9bn, a sign that investors are reassessing the prospects of Latin American carriers after years of pandemic-driven volatility.

Advisors on the transaction include a syndicate of global banks and brokers. The transaction is structured to allow both fresh capital for the airline and secondary liquidity for pre-existing investors — a dual-objective approach increasingly common in post-restructuring equity raises. Aeromexico’s securities are expected to trade under the ticker AERO.

The timing reflects stabilising passenger demand across Mexico and transborder routes, but the deal will be evaluated against persistent sector risks: jet-fuel price swings, currency volatility and competitive pressure from low-cost carriers. Analysts note that a successful offering could reset the airline’s cost of capital and open options for fleet renewal or network expansion.

For private-equity stakeholders, the IPO presents an opportunity to crystallise gains after taking the company through bankruptcy and recovery. If Apollo follows through with a large secondary sale, it would be consistent with broader PE behaviour this year as managers rebalance portfolios and return capital to investors.