Tags: carlos slim | mexico | stock | drought

Carlos Slim to Break Mexico Stock Drought With $1.4 Billion Sale

Carlos Slim to Break Mexico Stock Drought With $1.4 Billion Sale
Carlos Slim (Getty Images)

Friday, 21 February 2020 02:56 PM EST

Billionaire Carlos Slim’s construction company Promotora del Desarrollo de America Latina is planning the biggest public stock offering Mexico has seen in almost two years.

The company, known as Promotora Ideal, will sell 25.8 billion pesos ($1.4 billion) worth of shares in a Fibra E, a Mexican REIT-like structure that invests in infrastructure projects, according to a filing to Mexico’s stock exchange.

Juan Rich, head of research at Mexican brokerage Ve por Mas, said the listing could draw a lot of interest since Mexican benchmark interest rates are expected to keep falling, which boosts the appeal of the dividend yields of REIT-like investments.

“It is a good time to list a Fibra,” Rich said.

Slim’s Telesites, which own telecommunications towers, said earlier this month it was also exploring issuing a Fibra, but the company has not set a date or provided further details.

Slim’s offering is set to break a long dry spell in Mexican markets and is the first Fibra E to be listed since June 2018, when Administrador Fibraestructura raised $298 million. It is also the biggest offering in the country since Mexico City’s planned new airport project sold $1.5 billion in stock in a March 2018 IPO.

Uncertainty has surrounded the Mexican capital markets since the airport project was canceled by President Andres Manuel Lopez Obrador just seven months after the IPO.

Carlos Slim’s companies had major contracts with the airport project, and the pension fund run by his bank, Grupo Financiero Inbursa, was a top investor in the airport Fibra. Sluggish economic growth and declining investment have also contributed to Mexico’s listing shortage.

Ideal’s listing will take place at some point this year, and Casa de Bolsa Credit Suisse will be the bookrunner.

© Copyright 2026 Bloomberg News. All rights reserved.


StreetTalk
Billionaire Carlos Slim’s construction company Promotora del Desarrollo de America Latina is planning the biggest public stock offering Mexico has seen in almost two years.
carlos slim, mexico, stock, drought
287
2020-56-21
Friday, 21 February 2020 02:56 PM
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