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 Business News | June 2008 
Mexican Health Firm Genomma Lab Set For IPO - Source
 Noel Randewich - Reuters
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Mexico City - Mexico's Genomma Lab, which sells sexual potency elixirs as well as ointments for acne and wrinkles, plans to list its shares this month in an initial public offering that could raise $160 million.
The price of the sale will be set on June 17, with stock market trading beginning on June 18, a source at one of the lead banks in the deal told Reuters on Wednesday.
Genomma Lab, which sells more than 50 over-the-counter health-care products, plans to issue up to 110.5 million new shares, including over-allotment, and estimates that they could go for between 16 pesos and 20 pesos each.
In addition to selling new shares, owners of Genomma Lab, which contracts manufacturers to make its health products and promotes them heavily on television, plan to sell up to 150.5 million of their own stake in the company as part of the offer.
The lab's top-selling product category is an anti-acne line, followed by its Linea M sexual protection and stimulation products, according to the preliminary prospectus.
Mexico's most recent sizable stock listing was last November, when cable television company Megacable (MEGACPO.MX: Quote, Profile, Research) held a $660 million IPO.
Total sales at Genomma Lab last year were 1.873 billion pesos ($180 million), with earnings before interest, tax, depreciation and amortization of 461 million pesos ($45 million).
After this month's share sale, up to 28 percent of Genomma Lab will be in the hands of stock market investors, according to the prospectus.
In public stock listings, Mexico lags far behind Latin America's other big bourse, Sao Paulo in Brazil, which had dozens of IPOs last year.
Shares of Mexico's stock exchange are due to begin trading on June 13 in an initial public offering seen raising $440 million.
($1 = 10.32 pesos)
(Editing by Gunna Dickson) |
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