Chile suffered a five-year drought of equity offerings until
last November when a bank with some big-name backers became the
first Chilean company to launch an IPO since 1997. Corpbanca's
IPO was just one of two IPOs in all of Latin America last year.
Controlled by Chilean financier Alvaro Saieh and US private
equity investors Hicks, Muse, Tate&Furst and JP Morgan
Capital Partners, the bank pulled off a $150 million stock
offering co-managed by local investment banks IM Trust and
Consorcio Financiero. The deal required a large dose of
investor education but showed that with a good story and a
respected controlling investor, Latin American companies still
can still raise money on the equity markets. LatinFinance has
named the Corpbanca IPO the equity deal of the year for
Years of weak investor demand, high interest rates and
disappointing valuations have...
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