The logo of Mexican airline Aeromexico is pictured on a plane's tail at the hangars of the airline in the Benito Juarez International airport in Mexico City, Mexico June 28,2022 REUTERS/Luis Cortes

By Prakhar Srivastava

(Reuters) -Apollo-backed Grupo Aeromexico's shares rose 0.84% in their New York Stock Exchange debut on Thursday, valuing the Mexican airline at nearly $2.8 billion almost four years after emerging from bankruptcy.

The company's stock opened at $19.16 apiece, just above the $19 issue price.

Aeromexico and some of its existing shareholders sold 11.7 million American Depositary Shares (ADS) in an initial public offering on Thursday at the midpoint of its marketed range of $18 to $20, raising $222.8 million.

Lukas Muehlbauer, research analyst at IPOX, said the market reaction suggested investors were looking past the "immediate regulatory concerns," supported by Aeromexico's "post-bankruptcy recovery" and its return to public markets.

The listing comes amid the Trump administration's crackdown on Mexican airlines over competition concerns.

The U.S. Department of Transportation has moved to revoke several Mexican airline routes and is in a court dispute over its order to unwind Aeromexico's joint venture with Delta, which allows the carriers to coordinate scheduling, pricing and capacity.

The dispute is likely to drag the stock until the court appeal is resolved, as it could disrupt important U.S. routes and revenue streams, Muehlbauer said.

IPO activity has picked up after a slowdown triggered by U.S. President Donald Trump's shifting trade policies and market volatility.

A rally in equities and interest rate cuts have boosted investor demand for fresh offerings, though a prolonged government shutdown has caused some delays.

Aeromexico, backed by alternative asset manager Apollo Global and U.S. carrier Delta, filed for Chapter 11 bankruptcy protection in 2020 after the pandemic crushed travel demand, and completed its restructuring in January 2022 after lowering costs and upgauging to larger, more efficient aircraft.

Barclays, Morgan Stanley, J.P. Morgan and Evercore were the joint lead book-running managers for the listing.

(Reporting by Prakhar Srivastava in Bengaluru; Editing by Sahal Muhammed and Shailesh Kuber)