MEXICO CITY, June 3 (Reuters) - Mexican miner and infrastructure giant Grupo Mexico has postponed its plans to launch a $1.05 billion initial public offering (IPO) of its rail unit ITM by the end of June, according to a source close to the deal.
The source did not specify why the IPO of the rail unit, a key beneficiary of Mexico’s booming auto sector, had been postponed.
An official from the company’s rail unit said it was still not defined when the offer would take place.
Last month, citing an analyst presentation, Reuters reported that Grupo Mexico planned to raise between 13.7 billion and 16 billion pesos in the IPO, which it was aiming to price in the final week of June.
Grupo Mexico had previously said it hoped to raise $1.3 billion in the share offer, which the company plans to use to fund the expansion of its rail network and investment in upgrading its locomotive and rail cars.
For years, Grupo Mexico has spoken of its plans to list the ITM rail unit. The rapid growth of Mexico’s auto manufacturing industry, which sends thousands of cars north to the U.S. market each year by rail, helped pave the way for the share offer, Grupo Mexico has said. (Additional reporting by Gabriel Stargardter; Editing by Chris Reese)