Author: Atrium Research October 16, 2026
Nicholas Cortellucci, CFA | Equity Research Analyst | [email protected] | 647-391-3314
Luca Perna | Equity Research Associate | [email protected] | 647-969-1027
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What you need to know:
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PesoRama is planning to open five new JOi Dollar Plus stores by the end of November, bringing the network to a total of 54 stores.
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The Company closed its $28.4M bought deal financing at $0.60/share, including the partial exercise of the over-allotment option, funding >50 new stores.
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Quilvest Capital Partners fully exited Tiendas 3B for a ~49x return, highlighting what a scaled Mexican discount retailer can be worth.
Yesterday, PesoRama (PESO:TSXV, PSSOF:OTCQX) announced the upcoming opening of five new JOi Dollar Plus stores, with stores #50 and #51 scheduled for October and stores #52, #53, and #54 for November. This marks quick execution on the newly raised capital, with more to come. Store #50 represents PESO’s fifth store in Puebla, while the remaining four expand the Company’s presence across the greater Mexico City area, including Toreo Parque Central in Naucalpan, a major retail destination with ~200 establishments and 1.3M visitors monthly. This will bring PESO to 54 stores by the end of November, compared to our model which assumed 66 stores by fiscal year-end. We are maintaining our BUY rating and target price of $1.60/share on PesoRama.
Bought Deal Financing On October 14ᵗʰ, PESO closed its previously announced bought-deal public offering, led by Canaccord Genuity, issuing 47.28M common shares at $0.60 per share for gross proceeds of ~$28.4M. This included the partial exercise of the underwriters’ over-allotment option, up from the base deal of $25.0M (41.67M shares) announced on October 5ᵗʰ. Proceeds will be used to continue the expansion of the JOi DOLLAR PLUS store network across Mexico and for general working capital. This is a major improvement on PESO’s last equity financing in April, when it raised $10M at $0.35/unit including a half warrant.
Given the cost to open a store of ~$0.5M, this should allow PESO to open >50 stores. This compares to our expectation of 13 stores to open in Q4 (reaching 66 total by fiscal year-end) and 64 in FY28 (reaching 130 by fiscal year-end), providing ample runway and growth funding.
Case Study – Tiendas 3B A few weeks ago, Quilvest Capital Partners announced that it has fully exited its position in BBB Foods Inc. (TBBB:NYSE), the operator of Tiendas 3B, returning US$1.1B to its investors, for a ~49x return. Quilvest first invested in BBB Foods in 2004, when it had one store and aimed to bring the European hard discount grocery model to Mexico. The company now operates ~3500 stores and grew revenue 39% in Q2/26 and achieved 20% same-store sales growth. In 2024, BBB Foods listed on the NYSE, and is up >150% since its IPO. TBBB now trades at a premium valuation of 38.2x 2026E EBITDA and 21.1x 2027E EBITDA.
As we noted in our initiation with regard to 3B (read here), the growth in the Mexican discount retail segment has been almost entirely grocery-led, and nobody has yet scaled a general dollar merchandising store. PESO is taking a similar approach to 3B, bringing a format from other countries into an underserved market. While the two formats are different, 3B shows that Mexico can support a discount retailer scale, and the market will reward it.
Catalysts
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Quarterly Financial Results (Including Breakeven EBITDA) – Ongoing
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New Store Opening Announcements – Ongoing
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