Mexico Unit of Banco Santander Rises Slightly in Debut

The Mexican unit of Banco Santander had a tepid open on its first day of trading amid the choppy environment for I.P.O.'s

Shares of the unit, Grupo Financiero Santander México, rose 3.4 percent to $12.60 at the opening of New York Stock Exchange trading on Wednesday.

The financial firm, one of country's largest lenders, was the third largest initial public offering this year, after Facebook and Japan Airlines.

The bank held a dual listing in Mexico and the United States, raising about $4.2 billion. On Wednesday, it priced its United States listing at $12.18, near the middle of its expected range of $10.99 to $12.70 per share. Each American depositary share is worth 5 Mexican shares, which were priced on Wednesday at 31.25 Mexican pesos.

Since the beginning of this year, 141 companies have priced their offerings, about a half fewer than last year, according to data from Renaissance Capital, an I.P.O. advisory firm. In the United States, 97 have pri ced so far, a slight gain from last year, but the market has been bogged down by Facebook's botched May offering and its subsequent weak stock performance.

Amid increased uncertainty, many American companies have held back. So far this year, 112 companies have filed for an initial public offering in the United States, according to Renaissance Capital, down 47.7 percent from last year. On Wednesday, ViSalus, a health and wellness consumer unit of Blythe, said it was shelving its I.P.O. plans, citing market conditions. Last week, Cortina Systems, a semiconductor company, also withdrew plans for a $100 million offering.

Santander México's debut on Wednesday indicates that investors are moving cautiously. While many new shareholders were likely drawn to the stock because of its ties to the growing Mexican economy, there was also concerns about its Spanish parent company, Banco Santander, which has been dragged down by Spain's credit woes.

“The bank has co ntinued to be well positioned in Mexico's banking system,” said Arturo Sanchez, a Standard & Poor's analyst. “But we're closely monitoring that relationshipâ€" not only for Banco Santander but for the other Spanish-owned banks.”

The company, which is trading under the symbol “BSMX,” was led in its offering by Santander, UBS, Deutsche Bank and Bank of America Merrill Lynch.