Chilean Market Challenging Despite Arauco FO

Chilean equity issuers should find it as difficult as the rest of the region to issue before the end of the year. Parque Arauco took advantage of a calm window to raise $168m-equivalent through a follow-on, but this does not necessarily indicate that more will follow, bankers say. “It will be very difficult to see more issuance. The issuer came through a window that opened in a challenging environment,” says a local ECM banker. The shopping center developer and operator sold 90m shares, with the controlling shareholders purchasing $60m-equivalent. Parque Arauco plans to use the funds for its $840m expansion plan. LarainVial and Banchile led. Looking ahead, the government could bring the offering of shares in water utility Essal before the end of the year. Food producers Agrosuper and CM Chiloe are awaiting better conditions for IPOs, as are builder Ingevec and retailer SMU.