Renaissance Capital logo

Mexican discount grocery chain BBB Foods prices US IPO at $17.50, the high end of the revised range

February 9, 2024

BBB Foods, which operates more than 2,200 discount grocery stores in Mexico, raised $589 million by offering 33.7 million shares (17% secondary) at $17.50, the high end of the upwardly revised range of $16.50 to $17.50. The company originally planned to offer 28.1 million shares (100% primary) at $14.50 to $16.50, before revising the terms on Thursday. A new investor had indicated on $95 million worth of shares in the offering (16% of the deal).

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 plans to list on the NYSE under the symbol TBBB. J.P. Morgan, Morgan Stanley, BofA Securities, Scotia Capital, and UBS Investment Bank acted as joint bookrunners on the deal.