November 10, 2017 / 12:27 AM / 2 years ago

Grupo Mexico raises nearly $1 billion in rail unit IPO: sources

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 on Thursday priced an initial public offering of its rail unit at 31.50 pesos per share, two sources said, raising around 19 billion pesos ($998 million).

GMexico Transportes priced at the bottom of a 31.50 pesos to 39 pesos per share range, two sources with knowledge of the deal said, requesting anonymity.

The company sold 603 million shares, including overallotment, according to a filing with the Mexican stock exchange.

In 2016, GMexico Transportes had sales of $1.77 billion.

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.

Inbursa, the bank owned by Mexican tycoon Carlos Slim, said on Thursday that it expects to see profit of 4.65 billion pesos ($245 million) from selling most of its 8.25 percent stake in GMexico Transportes as part of the share offering.

Reporting by Christine Murray and Michael O'Boyle.; Editing by Diane Craft & Shri Navaratnam

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