Grupo Mexico expects to raise $1.23 billion in rail unit IPO

FILE PHOTO: The logo of mining and infrastructure firm Grupo Mexico is pictured at its headquarters in Mexico City, Mexico, August 8, 2017. REUTERS/Ginnette Riquelme/File Photo

MEXICO CITY (Reuters) - Mexican miner and infrastructure company Grupo Mexico expects to generate more than 23.5 billion pesos ($1.23 billion) in an initial public offering of its rail unit, GMexico Transportes, now set to price on Nov. 9, according to an investor presentation.

Grupo Mexico GMEXICOB.MX had previously said the long-delayed IPO would price on Oct. 31.

The company expects the shares to price at between 31.5 and 39 pesos each. The IPO will help to fund the purchase of Florida East Coast Railway, an asset it snapped up in March for $2.1 billion, according to the document seen by Reuters late on Monday.

In 2016, the firm’s rail unit had sales of $1.77 billion.

Grupo Mexico shares were up 0.37 percent at 62.59 pesos per share on Tuesday.

($1 = 19.1430 Mexican pesos)

Reporting by Sheky Espejo