Intriguing IPOs: BBB Foods Inc. (TBBB)
This Mexican grocery chain looks like a rare find among IPOs.
Sometimes, you find a company that tugs at every investing bias you have developed. For me, Mexican hard discount grocer BBB Foods (NYSE: TBBB) pulls at my investing heartstrings. The company went public last week without much fanfare, but it was one of those rare occasions where the IPO raised much more capital than initially anticipated. According to Bloomberg, it was the largest IPO of a Mexico-based firm on the U.S. exchanges in over a decade.
I get why most might scoff at buying a grocery retailer. It’s a low-margin business. While I won’t fight anyone on that point and will concede that BBB Foods’ margins are lower than most, this is one of those rare IPOs that has me digging deep into the prospectus.
This may be more than an intriguing idea; it might soon be making its way into my portfolio.
Let’s dig in.
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