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September 28, 2017

Mexico’s Sigma sees IPO cancelled by parent company Alfa

Mexican conglomerate Alfa has confirmed that the planned initial public offering (IPO) of its processed food business Sigma Alimentos has been cancelled.

By Andy Coyne

Mexican conglomerate Alfa has confirmed that the planned initial public offering (IPO) of its processed food business Sigma Alimentos has been cancelled.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
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“The stock offer was over-subscribed, but at a price that was not in line with the established price range,” Alfa said in a statement.

Monterrey-based Alfa was hoping to raise MXN18.5bn (US$1bn) in the share offering that was scheduled for Wednesday (27 September).

It is the second time an IPO for Sigma, which produces dairy products, meat and frozen food, has been aborted. A plan to sell shares in the business was first touted in 2013.

Earlier this month, Alfa announced its plans to revisit the Sigma IPO idea and said it was planning to place around 15% of its equity up for sale, pricing shares at MXN23 to 29 each.

Sigma has been in an acquisitive mood of late. In June, it bought Peruvian packaged meats and dairy company Suisse Peruana de Embutidos and earlier this month it took full control of Romanian meat processing company Caroli Foods Group.

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Free Report
img

What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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