(Reuters) – Shares of Mexico’s BBB Foods rose 11.4% on their debut on the New York Stock Exchange (NYSE) on Friday, giving the discount grocery retailer a valuation of $2.2 billion.
The Mexico City-based company’s shares debuted at $19.50, above their initial public offering (IPO) price of $17.50 apiece.
BBB Foods is among many foreign companies that have flocked towards U.S. bourses in recent months, lured by the broader pool of capital and the promise of rich valuations that American markets can afford.
The IPO market is looking for a turnaround in fortunes as bets of a soft-landing for the U.S. economy rise, after a two-year dry spell fueled by the Federal Reserve’s aggressive interest rate hikes and geopolitical pressures.
A rally in technology stocks, fueled by hopes of a soft-landing, has also encouraged companies to list their shares.
BBB Foods raised $589.1 million by selling 33.7 million shares in an upsized offering on Friday.
Founded in 2005, BBB Foods caters to budget-savvy customers with a limited assortment of products. Its name refers to “Bueno, Bonito y Barato,” Spanish for “good, nice and affordable.”
Quilvest Capital Partners, a global mid and lower mid-market alternatives investment manager with over $7 billion in assets under management (AUM), is the one of the largest investors in BBB Foods.
(Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shailesh Kuber, Tasim Zahid and Shilpi Majumdar)
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