CCU Sets FO Price

Compania Cervecerias Unidas (CCU) has concluded the first step in an equity follow-on that should raise CLP331.5bn ($655m), setting the price at CLP6,500, according to regulatory documents. The Chilean beverage company has sold 22.6m shares, representing rights to shares waived by controller IRSA, and now opens a 30-day preferential rights period for existing holders to buy the remaining 28.4m shares. The price represented a 3.0% discount to the previous CLP6,702.60 closing price. Shares closed at CLP6,667.00 Friday. Demand reached CLP645bn from 515 accounts. About 38% of the shares was allocated to international buyers in the form of ADR, 37% to Chilean pension funds, and the remainder to other types of investors. IRSA, owned equally by Heineken and the Luksic family’s Quinenco vehicle, are expected to control 60% of the company post-float, with the market holding the rest. CCU is raising funds for organic growth and acquisitions. JPMorgan, Citi, Deutsche Bank, and Goldman Sachs are managing the international portion, and BanChile and LarrainVial are handling the local portion. CCU in a June meeting agreed to a capital increase of up to CLP340bn.