BBB Foods, which operates more than 2,200 discount grocery stores in Mexico, announced terms for its IPO on Friday.
The Mexico City, Mexico-based company plans to raise $435 million by offering 28.1 million shares at a price range of $14.50 to $16.50. A new investor intends to purchase $88 million worth of shares in the offering (20% of the deal). At the midpoint of the proposed range, BBB Foods would command a market value of $1.7 billion, or about $2.3 billion on a fully diluted basis.
BBB Foods states that it is the leader in the grocery hard discount model in Mexico. Operating under the name Tiendas 3B, the company offers a limited assortment of products that cover the daily grocery needs of its customers, pricing products to offer what is generally market-leading value for money. Its product range consists of approximately 800 SKUs of branded, private label, and spot products. BBB Foods had 2,288 stores at the end of 2023.
BBB Foods was founded in 2004 and booked $2.4 billion in sales for the 12 months ended September 30, 2023. It plans to list on the NYSE under the symbol TBBB. J.P. Morgan, Morgan Stanley, BofA Securities, Scotia Capital, and UBS Investment Bank are the joint bookrunners on the deal. It is expected to price during the week of February 5, 2024.
