Mexican discount grocery chain BBB Foods is setting its U.S. IPO at $17.50, the high end of its revised range

BBB Foods, which operates more than 2,200 discount grocery stores in Mexico, raised $589 million by offering 33.7 million shares (17% secondary shares) at $17.50, the top end of its upwardly revised range of 16 .50 to $17.50. The company had originally planned to offer 28.1 million shares (100% primary shares) at $14.50 to $16.50 before revising the terms on Thursday. A new investor had listed shares worth $95 million in the offering (16% of the deal).

BBB Foods says it is a leader in the hard discount grocery model in Mexico. Operating under the name Tiendas 3B, the company offers a limited range of products to meet its customers' daily grocery needs and markets the products as offering generally market-leading value for money. The product range includes around 800 SKUs of branded, private label and spot products. BBB Foods had 2,288 stores at the end of 2023.

BBB Foods plans to list on the NYSE under the symbol TBBB. JP Morgan, Morgan Stanley, BofA Securities, Scotia Capital and UBS Investment Bank acted as joint bookrunners on the transaction.