CCU Sets Pricing Target

Chilean beverage company Compania Cervecerias Unidas (CCU) is expected to determine the price for its equity follow-on of up to CLP340bn ($660m) September 13. The issuer plans to close books on the portion of the transaction done through a bookbuilding operation September 12, according to regulatory documents, meaning the price should be disclosed September 13. The bookbuilding portion accounts for 22.6m of the 51m primary shares on offer, with the remaining 28.4m to be sold in a preferential rights period for existing holders open from September 13 to October 4. The 22.6m CCU shares sold in the first portion represent rights to shares waived by controller IRSA. IRSA, owned equally by Heineken and the Luksic family’s Quinenco vehicle, should control 60% of the company post-float, with the market holding the rest. The 51m shares would raise CLP354.71bn at Wednesday’s CLP6,955 closing price. CCU is raising funds for organic growth and acquisitions. The issuer has been meeting investors since this week. JPMorgan, Citi, Deutsche Bank, and Goldman Sachs are managing the international portion, which will include shares sold in the form of ADR. LarrainVial and BanChile are handling the local portion.