ICA (MX:ICA) (ICA) vice president Luis Zarate said Viveica is already well set for growth but that it needs cash to collect land holdings for future development.

Viveica, which supplies about 15 percent of ICA's revenue, expects to double sales volume this year to 4,800 homes, generating some $80 million in revenue, said Zarate.

The share offer "is a project that is already in the works. With this we will obtain capital for land purchases," said Zarate, "Because that's what is important for a home builder, how much land it owns."

Mexican President Vicente Fox has pledged to build more houses for the country's working class and is handing out credits to companies to build low cost homes.

A burgeoning mortgage lending industry is also boosting the stock prices of construction companies in Mexico.

Viveica is not the only Mexican company raising its stakes in the industry.

Another building company, No. 2 home builder Urbi, is expected to launch Mexico's first initial public offering in five months on Friday with the sale of a minority stake to local and foreign buyers for about 35 pesos per share.

The company estimated in its prospectus that it would receive about $193 million from the primary offer, and said it plans to use part of the proceeds to buy land and pay down short-term obligations, which were close to $192 million at the end of last year.

Urbi's share offer will be the first IPO in Mexico since last October, when competing home builder Sare (MX:SAREB) listed on the local bourse.

Home builder Geo <GEO.MX>, with net profits of $9.55 million in the first quarter, has seen its stock surge about 140 percent in the past year, while competitor Ara's (MX:ARA) stock has gained close to 70 percent.

"The housing market is growing," said Zarate. "We are acquiring important land reserves to be able to have sustainable growth."

Zarate said Viveica has some 220 hectares of development land and is in the process of acquiring another 50 hectares.