As we reported last week, LATAM Airlines Group returns this Thursday, July 25, to the New York Stock Exchange (NYSE) with the reopening and new listing of its ADR program. This occurs after the establishment of a public price of USD 24 per ADR in a secondary public offering by certain shareholders to sell 19,000,000 of these securities (each equivalent to 2,000 common shares of LATAM).
The ADRs will begin trading on the NYSE this Thursday under the symbol LTM. LATAM Airlines had suspended its operation in this market in June 2020 when it entered a voluntary restructuring process under Chapter 11.
“Regarding the subscribed offer, the selling shareholders have granted the underwriters a 30-day option to purchase up to 2,850,000 additional ADRs at the initial public offering price. LATAM will not receive any proceeds from the sale of ADRs by the selling shareholders. The offer is expected to close on July 26, 2024, subject to the satisfaction of customary closing conditions,” the airline detailed in a statement.
The global coordinators and lead book-running managers for the offering are Goldman Sachs & Co. LLC, Barclays Capital Inc., and J.P. Morgan Securities LLC. Additional book-running managers are Citigroup Global Markets Inc., Santander US Capital Markets LLC, Deutsche Bank Securities Inc., BNP Paribas Securities Corp., MUFG Securities Americas Inc., Natixis Securities Americas LLC, and Larraín Vial S.A., with Morgan Stanley & Co. LLC acting as co-manager in the transaction.
In the first quarter of 2024, LATAM Airlines achieved an adjusted EBIT margin of 13.9% (+3.4 pp vs 2023) and a net profit of USD 258 million (+82%). The guidance for 2024 as of May 2 projects an adjusted EBIT margin of between 11% and 12.5%, with revenues ranging between USD 12.8 and 13.1 billion.
Second-quarter results will be announced next Wednesday, August 7.
