Mexico's Alfa eyes IPO at end of June for auto unit Nemak

Wed Jun 10, 2015 12:04pm EDT
 
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MONTERREY, June 10 (Reuters) - Nemak, the auto parts unit of Mexican conglomerate Alfa, is planning an initial stock offering at the end of June to finance expansion and return cash to shareholders, according to a company document.

The company plans to sell stock on June 30, according to a presentation published on the Mexican Stock Exchange's website, and the new shares could begin trading on July 1.

Alfa executives have said they want to raise around $1 billion from the offering.

Ramon Leal, Alfa's chief finance officer, told Reuters last month that some of the funds raised could be used to finance its purchase of Canadian oil firm Pacific Rubiales.

Nemak accounts for more than one-quarter of Alfa's revenues and has a partnership with Ford, which owns nearly 7 percent of Nemak. (Reporting by Gabriela Lopez; Editing by Jeffrey Benkoe)