- Mexico’s largest IPO this year
demonstrated that there continues to be demand in the market,
in spite of global economic uncertainties;
- By spinning off its US assets the company was
able to raise its market valuation;
- Changes to Mexico’s financial system
are still expected, though little has been made official
creating an environment in which larger valuations are in
high demand but smaller firms find it hard to come to
The October 16 initial public offering (IPO) of
Mexican dairy company Grupo Lala represented the
country’s largest such offering this year. Its
rare spin-off structure could set a precedent for other
would-be LatAm listcos looking to raise their valuation.
Grupo Lala is one of Mexico’s best-known
brands. Even so, a decision to spin off...