Cencosud SA’s $330m IPO
BBVA Securities, Celfin Capital and Santander Investment Securities were joint bookrunners
The IPO of Cencosud SA, one of the leading retail players in Chile and Argentina, marked a numbers of firsts in Chile. It was the first IPO offered simultaneously in the Chilean and international markets. It also signalled a change in the profile of investors participating in IPOs in the Chilean market, with a high level of placement among retail investors displacing traditional investors, such as pension funds and other institutional investors. With about 3000 investors, Cencosud is now one of the most widely-held shares in Chile.
The innovative structure that prioritised the placement of shares in the domestic market resulted in the largest IPO in the history of the Santiago Stock Exchange, which was also the largest IPO transaction in Latin America in 2004. The judges also took note of the difficult market conditions that were depressing equity markets at the time.
