Mexico’s BBB Foods valued at $2.2 billion after shares jump 11.4% on New York debut

(Reuters) -Shares of Mexico’s BBB Foods rose 11.4% on their debut on the New York Stock Exchange (NYSE) on Friday, giving the discount grocery retailer a valuation of $2.2 billion.

The Mexico City-based company’s shares debuted at $19.50, above their initial public offering (IPO) price of $17.50 apiece.

BBB Foods is among many foreign companies that have flocked towards U.S. bourses in recent months, lured by the broader pool of capital and the promise of rich valuations that American markets can afford.

The IPO market is looking for a turnaround in fortunes as bets of a soft-landing for the U.S. economy rise, after a two-year dry spell fueled by the Federal Reserve’s aggressive interest rate hikes and geopolitical pressures.

However, capital markets are still not up to full speed as investors remain cautious after lackluster reception to several new listings even at a time when expectations are growing of a rebound in the IPO sector amid improving economic situations.

BBB Foods raised $589.1 million by selling 33.7 million shares in an upsized offering on Friday.

Founded in 2005, BBB Foods caters to budget-savvy customers with a limited assortment of products. Its name refers to “Bueno, Bonito y Barato,” Spanish for “good, nice and affordable.”

Quilvest Capital Partners, a global mid and lower mid-market alternatives investment manager with over $7 billion in assets under management (AUM), is one of the largest investors in BBB Foods.