Shareholders of LATAM Airlines Group S.A, doing business as LATAM Airlines Group, plans to sell 19 million American Depository Shares (ADSs) on the New York Stock Exchange (NYSE) after the carrier makes its anticipated relisting on the US bourse later this month.
In a July 18, 2024, regulatory filing, the LATAM Airlines (LA, Santiago de Chile) parent said each ADS represented 2,000 common LATAM shares and that the underwriters would receive a 30-day option to purchase up to an additional 2,850,000 ADSs at the initial public offering price. Should the ADSs sell at a price similar to the LATAM Airlines Group S.A stock price on the Santiago Stock Exchange (SSE), the deal would generate around USD533 million for the sellers and value the recently bankrupt airline at around USD8.5 billion.
Also on July 18, a separate filing confirmed that the company would change the ratio of its ADSs to its common shares from one ADS, representing one common share, to one ADS representing 2,000 common shares. The filing notes that the change will not impact an ADR holder’s proportional equity interest in the airline. The filing says the ratio change is intended to result in a price per ADS in a customary range for a new exchange-listed equity security to satisfy the NYSE requirements.
LATAM Airlines Group S.A has approximately 604 billion common shares on issue, which, under the terms of the ratio change, would result in approximately 302 million ADSs being issued. The company's board has approved the registration of an additional 100 million ADSs, adding to the 217 million already registered. The additional ADSs will be available for future issuances, including to those shareholders who may opt to exchange their shares for ADSs in the ADR program.
According to ch-aviation PRO airlines data, LATAM operates to 156 airports in 27 countries, relying on a fleet of 318 aircraft, including forty A319-100s, 135 A320-200s, twenty-four A320-200Ns, forty-nine A321-200s, fourteen A321-200NX, nine B767-300ERs, ten B777-300ERs, ten B787-8s, and twenty-seven B787-9s spread across multiple AOCs.
The planned US listing follows the airline holding filing for bankruptcy in 2020, resulting in its delisting from both the SSE and NYSE. It exited the process two years later.
LATAM Airlines Group S.A expects to relist on the NYSE on or about July 25, 2024, subject to, among other items, pricing of the offering and final board approval.
