Aeromexico, Mexico’s flagship airline these days, says its IPO (Initial Public Offering) was oversubscribed by two times.  The airline managed to bring in about $330 million ($3.9 billion pesos) from the IPO on Friday.

These funds will be used to finance the purchase of 10 Embraer 190 jets and 10 Boeing 737s.  The airline already operates 40 737s and has so far added 8 Embraer 190 jets. 

The IPO represents 15% of the company’s equity presently.  Aeromexico was acquired by Mexican investors in 2009 and instead of representing a cash out by investors, this signals new investment in the airline which couldn’t come too soon.

Aeromexico owns a mixed fleet that is both old and new.  It expects to receive new 787s to replace its aging 767s soon and it still operates almost 40 ERJ-145 aircraft.  While fuel is somewhat cheap in Mexico, it still is a prime driver of costs for airlines there.

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