ILC Ready for Debut

Chile’s Inversiones La Construccion (ILC) was expected to emerge today with pricing on an IPO targeting about $500m-equivalent. Books closed Thursday afternoon, with the sale heard at least 3x covered, according to a person close to the deal, and receiving better demand than expected from foreign accounts. ILC, the investment arm of non-profit Camara Chilena de la Construccion (CChC) is a holdco for health and health insurance firms including AFP Habita and Consalud and the Tabancura and Avansalud clinics. It is offering 3.7m primary shares and 28.5m secondary shares to be sold by CChC, which should maintain a 67% position. “The company has an ample national presence, which reaches close to 78% of the population through its different business lines. Its main subsidiaries, insurance and health care, operate in sectors with a growing number of users and adequate regulatory framework,” CorpResearch says in a report. The sale would raise CLP235bn ($485m) if done at CorpResearch’s recommended purchase price of CLP7,300. ILC is raising funds to capitalize its health care operations and for organic growth and acquisitions. Bank of America Merrill Lynch, IMTrust and JPMorgan are managing the sale, which includes both a local and a 144a portion. ILC follows last week’s pricing of $67m-equivalent IPO from Chilean berry exporter Hortifrut.