Mexican Fashion Retailer Grupo Axo Eyes IPO

Grupo Axo, a Mexican fashion retailer, is reportedly considering launching an initial public offering (IPO) later this year, according to Bloomberg. The company has not yet made a final decision on the listing, and plans may still change. It remains uncertain whether the company plans to list its shares in the United States or Mexico.

The company markets international brands such as Abercrombie & Fitch and The North Face. In the first quarter of this year, Grupo Axo reported earnings before certain items of MX$959.6 million (US$50.2 million), reflecting a 23% increase compared to the previous year, as previously reported by MBN.

In 2017, private equity firm General Atlantic invested in Grupo Axo by acquiring a stake from restaurant operator Alsea. Later, in 2021, the company received additional capital investment from funds and accounts managed by BlackRock. Both General Atlantic and BlackRock declined to comment on the potential IPO.

Mexico has not seen a major IPO since late 2017, although there has been a resurgence in follow-on sales by real estate investment trusts and the transportation company Traxion, driven by optimism about a manufacturing boom in the country. Recently, discount retailer BBB Foods made its debut on the New York Stock Exchange in February, marking the largest IPO by a Mexican company in the United States since 2012, according to data compiled by Bloomberg.

Grupo Axo, which also operates in Chile, Peru, and Uruguay, declined to comment on the matter.