Banco de Chile Set to Close FO

Banco de Chile is set to close an equity follow-on expected to raise $187m equivalent today. Pricing and final terms should be announced tomorrow. The 1.4bn share follow-on would raise CLP90.3bn ($187m) based on Tuesday’s CLP64.50 close. In a research report, IMTrust says a fair price for the deal would be COP64.20, and the shop maintains a COP74.40 12-month target. The transaction comes as part of a 3.4bn share shelf approved at the beginning of the year, and follows two weeks of investor meetings. Proceeds are marked for general corporate purposes, mainly growing lending operations. BanChile and LarrainVial are managing the sale. Elsewhere in LatAm equity, Brazil’s Cimentos Liz is scheduled to follow Thursday with a BRL550m IPO, and entertainment promoter T4F is set for a BRL500m debut next week. These smaller equity raises set the stage for Arcos Dorados’ $1bn New York IPO and Gerdau’s BRL5bn follow-on due in the week of April 11.