Mexican dairy Lala prices IPO shares at 27.50 pesos, top end of range

Reuters

MEXICO CITY, Oct 16 (Reuters) - Mexican dairy producer Lala has priced its initial public offering at 27.50 pesosper share, the top end of the range, according to a regulatoryfiling on Wednesday.

The company had initially set the price between 23.50 pesosand 27.50 pesos per share. Lala shares will begin trading whenthe market opens on Wednesday.

Lala, among the biggest dairies in Latin America, is seekingto raise capital to expand its distribution and prepay some bankdebt, according to regulatory filings.

The company expects to generate up to 14.01 billion pesos($1.08 billion), with a global offering that could total511,111,111 shares, the filing said.

However, the company opted against offering the nearly 90million shares it had made available on Monday, which if usedcould have netted the company up to 15.3 billion pesos.

The dairy company's IPO comes amid record stock listings inMexico.

Lala has a well-recognized brand name in Mexico with justover half of the country's market for milk and cream and aboutone-third of the market for pre-packaged cheese, according to ACNielsen figures cited by the company.

Speculation had swirled in Mexican media last week that thecompany might shelve its IPO following financial uncertaintysurrounding U.S. debt ceiling negotiations.

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