Mexico's Esentia expects to raise $610 million in IPO

By Noe Torres

Nov 10 (Reuters) - Mexico's Esentia Energy Development aims to raise $610 million through an initial public offering, the firm said in a statement on Monday.

Esentia Energy Development, which is dedicated to the transport and commercialization of natural gas, plans to issue 224 million common shares through the operation, which it plans to carry out in both local and foreign markets. The company gave a price range of between $2.70 and $3.90 per share.

Esentia did not provide details for the transaction's dates.

The funds generated will be used to finance the company's expansion plans and to partially repay some of its debts, Esentia noted in a separate investor presentation.

Its main asset is the Waha System, also known as Wahalajara, a network spanning over 2,000 kilometers that transports low-cost gas from Waha, Texas, to key industrial centers in west-central Mexico, culminating in Guadalajara.

Last year, the company reported adjusted revenues of $403 million, a 0.5% increase compared to 2023, with an adjusted EBITDA increase of 1.6%, reaching $311 million.