Latam Airlines Group shareholders raise $456 million in US IPO

A group of Latam Airlines Group SA shareholders raised $456 million in an initial public offering of American depositary shares.

The shareholders in the Santiago-based airline sold 19 million ADS Tuesday for $24 each, according to a statement. Each ADS represents 2,000 of Latam’s common shares, which trade on the Chilean Stock Exchange. 

The sellers are Sixth Street Partners, Strategic Value Partners, Olympus Peak, Monarch Funds, Värde Funds and Marathon Fund, the statement shows.

The company, which has a joint venture agreement with Delta Air Lines Inc., has a market value of 7.7 trillion Chilean pesos ($8.1 billion) as of Wednesday’s close in Santiago. 

Latam’s US ADS have traded over the counter since the company was delisted from the New York Stock Exchange in 2020 following its filing for Chapter 11 bankruptcy, according to its prospectus with the US Securities and Exchange Commission. The company won court approval to exit bankruptcy in 2022.

The airline transported about 77 million passengers in the 12 months to March 31, the prospectus shows. Its fleet consists of 258 narrowbody aircraft from the Airbus A320 family for regional flying, and 58 widebody aircraft — Boeing’s 787, 777 and 767 models — for long-haul international flights.

In the three months ending on June 30, Latam had about $144 million of net income on $3 billion of total operating revenue, versus $144 million of net income on $2.7 billion of revenue a year earlier, the prospectus shows.

The offering is being led by Goldman Sachs Group Inc., Barclays Plc and JPMorgan Chase & Co. Latam plans for its ADS to begin trading Thursday on the NYSE under the symbol LTM.