Milbank in New York and Morales & Besa in Santiago have helped Chilean retailer Cencosud Shopping make Chile’s largest ever IPO, worth US$1.03 billion.
Shearman & Sterling LLP in New York and Carey in Santiago advised the underwriters for the deal, which closed on 2 July.
Cencosud Shopping's affiliate, Cencosud Peru, relied on García Sayán Abogados in Lima.
The deal involved an international offering and a national offering in Chile. The broker dealers for the international part are understood to have relied on in-house counsel.
The offering represented 28% of Cencosud Shopping’s capital stock. Each share priced at 1,521 Chilean pesos (US$2.24).
Chilean pension funds, banks and foreign investors purchased 58.5%, 11.7% and 8.3% respectively of the shares offered.
Ahead of the deal, Cencosud Shopping's parent company Cencosud underwent a corporate restructuring, merging its Peruvian and Colombian real estate assets. Cencosud also issued bonds worth US$484 million in two tranches, one with a 10-year term and another with 30 years attached.
Cencosud operates shopping centres across Chile, Colombia and Peru, and is the second-largest real estate owner in Latin America. It runs 33 real estate projects in Chile, four in Peru and four in Colombia. These are located in the countries’ most populated cities.
The IPO is more than double the record set by previous equity issuer Mallplaza, another shopping centre chain. Mallplaza went public for US$530 million last year.
Counsel to Cencosud Shopping
In-house counsel – Sebastián Rivera, Carol Luks and Ignacio Barrios
Partners Marcelo Mottesi and Andrew Walker, counsel Sam Badawi, and associates Gonzalo Guitart, Flora Gonzalez, Sonia Lopez and Benjamin Heller in New York
Partner Guillermo Morales and associates Andrea Díaz and Mariana Schnettler in Santiago
Counsel to Cencosud Peru
García Sayán Abogados
Partners Luis Gastañeta, Rossana Rodríguez and Alfonso Tola in Lima
Counsel to Bank of America Merrill Lynch Merrill Lynch and JP Morgan
In-house counsel to JP Morgan – Alejandro Rubilar
Shearman & Sterling LLP
Partners Stuart Fleischmann and Grissel Mercado, and associates Christian Vazquez, Anusha Pamula, Eric Grosshandler and Daniel Kachmar, and visiting attorney María Victoria Tuculet in New York
Partners Diego Peralta, Cristián Eyzaguirre and Francisco Guzmán, and associates Sergio Mesías, Daniela Soto, Javiera Avilés, Yoel Magendzo and Kriss Andia in Santiago
*This story was updated on 16/07/2019 to include counsel to Cencosud Peru.