By Anthony Harrup
Mexico City–Trucking and logistics company Grupo Traxion recently completed a successful follow-on offering, selling 143.3 million shares to raise capital for its expansion plans. The company aims to take advantage of Mexico’s growing nearshoring trend.
In the offering, Grupo Traxion sold 84.7 million shares in a primary offering and 58.6 million shares in a secondary offering. If overallotments are exercised, the total number of shares sold will reach 164.8 million.
The shares were priced at 30 Mexican pesos ($1.76) per share, lower than the previous day’s closing price of MXN32.88. As of Friday afternoon, Traxion shares were trading at MXN28.50.
Through the primary offering, Traxion expects to receive proceeds of MXN2.4 billion, or MXN2.8 billion if overallotments are included. The company plans to allocate this capital towards expansion initiatives, debt refinancing, and potential acquisitions. This strategic move will position Traxion to profit from opportunities arising from nearshoring – the relocation or expansion of production in Mexico to cater to the U.S. market.
With a fleet of 9,900 vehicles, including freight, passenger transport, and last-mile distribution, Traxion is one of Mexico’s leading transport companies. In 2022, the company reported sales exceeding MXN20 billion.