Mexico’s VivaAerobus plots IPO in the US – report

VivaAerobus (VB, Monterrey General Mariano Escobedo) is working with several financial institutions to prepare for a possible Initial Public Offering (IPO) in the United States, possibly by the end of 2021, unnamed sources told Bloomberg.

It is reportedly working together with Barclays, Goldman Sachs Group, and JP Morgan Chase Bank. The report did not specify at which stock exchange the IPO would take place.

The Mexican low-cost carrier refused to comment.

VivaAerobus had planned to go public as early as 2012 and actually filed the requisite paperwork with the Mexican stock market in 2014, but subsequently postponed its debut due to market volatility. Although it then indicated that it may list in 2015 or 2016, it never came close to actually launching an IPO. It revived the plans in 2019, although at that time it still targeted the Mexican Stock Exchange (Bolsa Mexicana de Valores – BMV). Again, the plans never materialised. In a recent interview with ch-aviation, Chief Executive Juan Carlos Zuazua said listing plans had been put on hold but would be revisited “when the time is right”.

VivaAerobus is currently wholly owned by Mexican bus transport company IAMSA. Its original investor, Irelandia Aviation (which also backs the eponymous but unrelated Grupo Viva), sold its 49% stake in 2016. According to the ch-aviation capacities module, VivaAerobus is currently the second-largest Mexican carrier by scheduled capacity, surpassing flag carrier Aeroméxico, although trailing behind low-cost rival Volaris.