Cellular firm in Mexico plans to sell shares; heavy demand is expected for initial stock offer of Grupo Iusacell SA

Grupo Iusacell SA, a cellular firm in Mexico, is planning an initial public offering which analysts predict will generate considerable attention from investors. The $227-million offering adds to the competition facing the dominant Telefonos de Mexico SA, which currently holds a monopoly on long-distance services. Demand for telephone services is high in Mexico, where there are only eight lines per 100 people in residential areas. Iusacell has cellular concessions that can reach approximately 70% of the population. The company plans to sell 85.7 million shares at a price of $26.50 per American Depository Share. This places Iusacell's value at approximately $42.83 per person covered by its concession. The company also plans to begin offering local telephone service via a highly advanced wireless system.