Chilean IPO Is A Success For La Polar
10/31/2003
Author:
Latin Lawyer Magazine
Chile
www.latinlawyer.com | Categories:
Economic Development
Industry Regulation
Retail/Services |
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In only the second Chilean IPO launched in the last five years, department store La Polar has successfully placed newly-issued shares, representing about 20 per cent of its capital stock, for a total amount of approximately US$30 million. The transaction closed on September 15. As well as being only the second IPO in the country in recent years, the issuance was also the second issuance ever under new regulations created by the Bolsa de Comercio de Santiago (Santiago Stock Exchange) for emerging companies that want to enter the market.
Article:
10/24/2003 -- In only the second Chilean IPO launched in the last five years, department store La Polar has successfully placed newly-issued shares, representing about 20 per cent of its capital stock, for a total amount of approximately US$30 million. The transaction closed on September 15.
As well as being only the second IPO in the country in recent years, the issuance was also the second issuance ever under new regulations created by the Bolsa de Comercio de Santiago (Santiago Stock Exchange) for emerging companies that want to enter the market. The first IPO launched using these regulations was that of local bank Corpbanca.
The shares were acquired by more than 2,000 local and foreign individuals, companies and institutional investors. The funds raised through the move will be used to finance the expansion plan of the company, which includes opening nine new stores in the next three years.
The company is now 80 per cent owned by foreign private equity investor Southern Cross Fund, which took control of La Polar five years ago when the company was in insolvency. La Polar is now reportedly the fourth-largest department store chain in Chile, serving over a million customers annually.
Partner Cristián Barros, of Barros & Errázuriz, commented: “The stock market has been very depressed in Chile during recent years, and this IPO seems to signal a recuperation.”
The placement agent was Larraín Vial SA.
Partner Cristián Barros, and associates Gonzalo Molina and Víctor Barros led the Barros & Errázuriz team that represented La Polar.
Larraín Vial was advised by the in-house lawyer Santiago Vial.