Builder Prices First Chilean IPO of the Year

Chilean construction firm Ingevec has priced a CLP12.51bn ($25.6m) IPO, the first in Chile this year. The deal was always going to be small, but it underwhelmed somewhat, with the CLP48.10 price coming below a CLP50 target and market expectations of just above CLP50. Demand was CLP69.35bn, from 382 accounts, Ingevec says. Domestic retail investors accounted for 36%, domestic pension funds for 29%, domestic non-institutional investors 20% and Foreigners 15%. Ingevec is raising funds for its engineering and construction projects, as well as to execute the investment plan for its real estate business. About 90% of the issuer’s business is construction and engineering, it says, for which it claims a $450m equivalent backlog, and the remainder real estate. The float represents about 30% of the company, with 70% remaining in the hands of a controlling group led by CEO Enrique Besa. LarrainVial managed the sale, which was originally intended for last year before market turbulence got in the way.