BBB Foods Inc stock rose. rose 9% at the closing bell in its first trading on Friday, as Wall Street snapped up shares of the fast-growing Mexican department store chain.
BBB Foods TBB,
It ended its first day of trading on the New York Stock Exchange at $19.05 per share, a comfortable gain compared to its initial public offering price of $17.50 per share. The stock opened at $19.50 per share and rose to $21 per share during the session.
In a sign of intense interest ahead of its debut, BBB Foods' IPO was priced at the top of an estimated range of $16.50 to $17.50 per share.
With 33.66 million shares, the IPO generated proceeds of $589 million as one of the largest deals to debut so far in 2024.
Global banking giants JPMorgan, Morgan Stanley, BofA Securities, ScotiaBank and UBS are listed as underwriters for the IPO.
BBB Foods capped off a busy week for initial public offerings and is at least the second major deal to boost its pricing level in a sign of investors' appetite for the stock, with the S&P 500 index (SPX) hitting the 5,000 mark on Friday for the first time ever.
Kevernia Therapeutics Kitex, Inc.
It fell 0.7% to $29.80 on Friday in its second day of trading. On Thursday, the IPO price was $22 per share, above the growing price range of $20 to $21 per share.
Ahead of its debut, the drug developer increased its IPO size from 11.1 million shares to 14.5 million shares and raised the estimated price range from a previous level of $17 to $19 per share, for IPO proceeds of $319 million.
Some recent IPOs have not performed as well.
Metagenomics MGX, Inc.
It priced 6.25 million shares at $15 per share for proceeds of about $94 million. This stock debuted on Friday at $10.25 per share in its first trading and later traded at $10.86, about 28% below its IPO price.
On Thursday, luxury ski and apparel brand Perfect Moment Ltd. PMNT,
It fell on its stock market debut.
Also this week, Fortegra Group withdrew plans to raise about $297 million in an IPO, citing “prevailing market conditions.”
1 week ago, Fractyl Health Inc. GUTS,
The 7.33 million shares were priced at $15 per share for proceeds of $110 million. The stock fell below the offering price on the first day of trading. On Friday, the stock fell nearly 4% to $10 a share.
Also last week, Alto Neuroscience Inc. ANRO,
It priced 8.4 million shares at $16 per share for revenue of $129 million. The stock began trading on February 2 and fell 12% to $16.69 on Friday.
BBB Foods wrote rapid revenue growth
BBB Foods was offering shareholders a stake in a company with a CAGR of 34.4% between 2020 and 2022.
The BBB in the name stands for Bueno, Bonito y Barato, which translates to good, nice and affordable.
The company currently operates about 2,300 stores but sees market potential in Mexico for up to 12,000 stores.
“We believe there is significant white space opportunity for Tiendas 3B,” the company said. “This opportunity will be driven by market expansion as a result of favorable demographic trends, low penetration of direct discount stores in the Mexican grocery market, and the growing appeal of hard discounting with Mexican consumers.”
In the nine months ended Sept. 30, BBB Foods reported a loss of $11.87 million on revenue of $1.8 billion, compared with the prior year's loss of $32.1 million on revenue of $1.85 billion.
On Thursday, BBB Foods boosted the estimated price range from its previous level of $14.50 to $16.50 per share and increased the offering size to 33.66 million shares from 28.05 million shares.
All of the additional 5.61 million shares come from BBB Foods' existing shareholders, including Quilvest Capital Partners, with no proceeds allocated to the company itself.
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