Mexican discount retailer Tiendas 3B is reportedly considering an initial public offering (IPO) in the US, enlisting the assistance of Wall Street banks JPMorgan Chase & Co., Morgan Stanley, and Bank of America Corp., according to sources familiar with the matter. The potential IPO is being explored for the first half of the year, although no final decision has been made, and plans remain subject to change.
Tiendas 3B, headquartered in Mexico City, was founded by Lebanese-American entrepreneur Anthony Hatoum around two decades ago. The retail chain currently operates over 1,500 stores across approximately a dozen states in Mexico. Embracing a business model reminiscent of the German discount chain Aldi, Tiendas 3B offers a limited range of products, spanning snacks, pet food, cleaning products, and diapers, all at competitive prices. The name “3B” reflects the retailer’s commitment to providing goods that are “bueno, bonito y barato” or “good, pretty, and cheap.”
Despite a drought of IPOs since 2018, the Mexican equity market has witnessed a resurgence, primarily fueled by follow-on offerings from industrial property firms capitalizing on the previous year’s factory boom. The nearshoring trend, combined with government cash aid programs, rising salaries, and job creation, has contributed to increased consumption and economic growth in Latin America’s second-largest economy.
Tiendas 3B’s exploration of a US IPO aligns with the broader economic trends and underscores the attractiveness of Mexican companies to international investors. The company’s early backing by Quilvest Capital Partners, a private-equity fund associated with the Bemberg family, adds to its profile as it navigates potential listing plans.
While Tiendas 3B and the banks involved declined to comment, the move reflects ongoing efforts by Latin American companies to tap into global capital markets and showcases the resilience and appeal of the region’s retail sector.