Mall Plaza hits the road ahead of IPO

Mall Plaza hits the road ahead of IPO

Capital Markets Equity IPO Chile

Chile's Mall Plaza is on the investor trail ahead of a 100% secondary IPO that could net its selling shareholders between $500m and $700m, LatinFinance understands.

JPMorgan and Morgan Stanley are conducting the global portion of the roadshow, tapping overseas accounts until July 20, according to an ECM banker in New York. Banchile, BTG Pactual and LarrainVial completed local investor meetings on Tuesday.

The mall operator, a subsidiary of Chilean retailer Falabella, is selling at least 196m shares, but this could increase based on investor demand, the source added. The selling shareholders are Inversiones Avenida Borgoño, Rentas Tissa and Inversiones Amal.

Leads expect to price the secondary IPO on July 26, the source confirmed.

Mall Plaza recorded $474m in income for the 12 months ending April 2 this year, according to an investor presentation from the company. At the same time in 2017, Mall Plaza had $465m in income, $432m in April 2016 and $411m in April 2015.

Total EBITDA was $375m at a margin of 79%, while net profits for the same period was $174m.

According to company documents, Mall Plaza had $5.64bn in leasing sales for the 12 months ending April 2, 2018 at a 96% occupancy rate and recorded 271m shoppers last year.

Mall Plaza commenced operations in Chile in 1990 and has since opened 17 commercial malls. It entered Peru in 2007 and has three operating facilities. In Colombia, the company opened one commercial mall in 2012, while a further two are under construction.

Humphreys rates Mall Plaza AA+ on a local scale and Fitch Ratings ranks the company AA locally.