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Aeromexico Returns to Wall Street in $222.8 Million IPO, Valued Near $2.8 Billion

The U.S. DOT’s push to unwind Aeromexico’s Delta joint venture poses a pending legal risk to U.S. route revenue.

Overview

  • Shares opened at $19.16 and rose 0.84% on their NYSE debut under the ticker AERO, putting the carrier’s market value near $2.8 billion.
  • The offering comprised 11.7 million ADS priced at $19, the midpoint of the range, with Barclays, Morgan Stanley, J.P. Morgan and Evercore as lead bookrunners.
  • Trading also resumed in Mexico, where the company listed 27.4 million shares at MXN 35.34 each.
  • Analysts said investors appeared to look past immediate regulatory concerns, though the DOT’s effort to revoke routes and unwind the Delta partnership remains in court.
  • Aeromexico plans to use proceeds for fleet growth, customer experience projects and maintenance, and it also received a $25 million private investment from PAR Investment Partners.