Mexico Viva Aerobus Airlines IPO in the US

[Asia Economy Reporter Yujin Cho] Viva Aerobus, a Mexican low-cost carrier (LCC), is planning an initial public offering (IPO) in the United States.

On the 29th (local time), Bloomberg News reported, citing sources, that Viva Aerobus has selected Barclays, Goldman Sachs, and JP Morgan as lead underwriters for its IPO process. Viva Aerobus aims to go public within this year.

Based in Mexico City, the airline is one of the top three carriers in Mexico by passenger transport volume. Following the resumption of operations due to the recovery from COVID-19, the number of passengers this year increased by 35% compared to the same period last year, reaching 1.34 million as of the end of last month.

The IPO initiative is expected to offer global investors growth opportunities amid the recovery of the global air passenger market following the economic reopening after COVID-19, according to the report.

According to the International Air Transport Association (IATA), Mexico is projected to recover its pre-COVID-19 passenger numbers and capacity within this year.

The funds raised through the IPO are expected to be used to alleviate financial difficulties caused by deteriorated finances during the COVID-19 period, as well as for operating expenses and fleet expansion.

Viva Aerobus focuses on the low-cost carrier business, which is highly dependent on passenger operations, and faced significant challenges in defending its performance as it did not receive government financial support during the COVID-19 period.

This content was produced with the assistance of AI translation services.