Saturday, June 10, 2023

Don’t get excited, Wall Street; for the BMV IPO Banamex will be Mexican

“I see that it is very difficult for them not to do it in Mexico, because it is a Mexican company, designed by Mexican investors,” he explained. “I don’t believe there is going to be a Mexican market that would recommend them to do an initial public offering.”

Martínez elaborated on the history of the BMV in 130 as a vehicle to start public companies, but also that they have the appropriate infrastructure to carry out the operation of Banamex. In the end, he said, Wednesday’s IPO announcement is an opportunity to excite market players.

The impact of Banamex’s exit to the BMV would also have a positive multiplier effect on other companies that are considering an IPO.

“If there is something so visible and of such magnitude, it will make many people to see this market which is unknown to them today or not free,” he said. “Financials and non-investors, investors and non-investors, the same government is interested and involved. So it is an operation that will have everyone’s hearts.

Martínez is not new to field bank IPOs; in 2012 it made it the Mexican subsidiary of Santander, which then reached a value of 16.5 billion dollars, with a majority of foreign residents.

“But the Mexican operation,” the manager emphasized. “I’ve lived through it, it’s touched me here and there, so of course it’s possible.”

According to Reuters, Citi analyzed both the New York and Mexican markets, without making it clear which of the two exchanges would be chosen.

“We don’t know if they are listed in Mexico or in the United States of America. Stock markets in Mexico have little depth, little liquidity and the fact is that they are contracted in very few things and the largest market in the world is the United States of America. It is not excluded that it happens in both markets can”, said Alejandra Marcos, Intercam’s economist.

while María Ariza, director of the Stock Exchange Institution (BIVA)He said that two years ago the Mexican market had ideal conditions, which are not there now, so Citi will opt for the Banamex IPO in the country and not in the United States.

The Mexican Stock Market in recent years has been characterized by a lack of IPOs and low participation and interest in new companies by either BIVA or the Mexican Stock Exchange (BMV).

“Time remains,” said Ariza. “It depends on the strategy of Citi, but Mexico should generate, at the time of the investment, an attractive, dynamic and high market, working in it.”

Nation World News Desk
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