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Interjet may launch smaller IPO in 2011 with focus on domestic investors

11-Jul-2011 12:16 PM

ABC Aerolineas SA Chairman Miguel Aleman Magnani stated it may try to sell shares in InterJet again in 2011 (Bloomberg, 09-Jul-2011). InterJet's IPO was cancelled on 29-Jun-2011 due to the "complex situation" in the global financial markets. Some potential investors in the airline chose not to buy shares after suffering losses in the days leading up to the planned IPO, Miguel Aleman Magnani said. However, the carrier may reduce the amount it seeks to raise from the original target of about USD300 million and focus more on domestic investors, the company's chairman said.  He added that in a future share sale, the company would aim to sell between 70% and 80% domestically and the rest internationally. After the first IPO attempt, “we realised that luckily the name Interjet is well recognised in Mexico,” he said. The company is working with Grupo Financiero Banorte-IXE and JPMorgan Chase & Co to sell as much as a 20% stake in the carrier.