Cencosud Bags Retail Investors
The Chilean grocery store chain storms into the stock market with an IPO aimed at domestic and international investors and feeds an appetite for Latin shares.
Chile's number two retailer conducted the largest-ever
initial public offering in the country's in May, with a strong
base of support from individual investors. Cencosud's $333.5
million offering drew orders of $1 billion. The company raised
$228.19 million in Santiago from mainly retail investors, and
$105.38 million in a level one-listing of American Depositary
Shares on the New York Stock Exchange.
Oscar Molina, co-head of corporate finance at Chilean
investment bank Celfin Capital, which was joint bookrunner on
the deal, says, "Initially we thought local demand for a large
deal like this would not be sufficient. The local market proved
to be much deeper than we thought six months ago." Laurence
Golborne, chief executive officer of Cencosud, says the
company's controlling shareholder, Horst Paulmann, wanted to
sell the 20% stake in his family-owned company, to as
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