Nemak, Mexican conglomerate Alfa's car parts unit, hopes to raise 13.3 billion pesos ($862 million) through an initial public offering (IPO) slated for June 30, the company said in its preliminary prospectus.
Nemak said it plans to offer nearly 620 million shares, including a greenshoe option, at between 20 pesos and 23 pesos per share. The IPO would be sold publicly in Mexico and through private placements abroad.
The company, which generates around 26 percent of Alfa's revenue, will aim to have the shares trading by July 1.
Nemak would redistribute up to 10.8 billion pesos made from the IPO between current shareholders, Alfa, and U.S. car maker Ford (F.N), which owns 6.76 percent of Nemak.
Alfa's chief financial officer, Ramon Leal, said recently that part of the money from the share offering could be used to finance Alfa's acquisition of Canadian oil firm Pacific Rubiales (PRE.TO).
Nemak hopes its revenue will grow 2 percent this year to $4.7 billion.