Banco del Bajío SA on June 8 priced its initial public offering at 29.50 Mexican pesos per share, near the lower end of its 29 pesos to 32 pesos per share price range.
In a filing with the Mexican stock exchange, the bank said the total offering value reached about 8.79 billion pesos, including overallotment options.
The bank's shares started trading on the stock exchange under the ticker symbol "BBAJIO." The stock rose almost 4% in the debut before losing some of those gains to trade at 30.21 pesos, 2.4% higher than the initial pricing, Reuters reported.
Before the pricing, market sources told the newswire that demand for Banco del Bajío shares was about four times oversubscribed.
According to prospectus materials filed in May, the bank plans to use the proceeds from the IPO to strengthen its capital adequacy ratio, grow its loan portfolio and to repay liabilities.
As of June 7, US$1 was equivalent to 18.21 Mexican pesos.