Skip to main content

Enjoy to Sell Shares for 50 Pesos Each in Chile IPO

By Nathan Gill
     July 8 (Bloomberg) -- Enjoy SA, a Chilean casino operator, said it will sell shares for 50 pesos each in the Santiago stock exchange’s first initial public offering this year.
     The company will announce the full amount raised at a ceremony at the exchange today, according to a statement posted on the Web site of the country’s securities regulator last night. The Santiago-based entertainment and hospitality chain with operations in Chile, Argentina and Croatia planned to sell 462 million shares, or a 30 percent stake in the company. The stock is scheduled to begin trading today.
     Enjoy is selling shares after shelving plans last year amid a plunge in the equity market that sent Chile’s main stock index down the most in a decade. The IPO, the country’s first since soccer club owner Azul Azul SA went public in November, may spur more new listings as the market recovers, said Raul Barros, an analyst at FIT Corredores de Bolsa in Santiago.
     “Enjoy’s IPO represents a change in consumer perceptions,” Barros said. “This could be the point of departure for new offerings next year.”
     Chile’s Ipsa index has gained 30 percent this year after the central bank cut its benchmark lending rate 7.5 percentage points to a record low 0.75 percent and the government started spending savings from copper exports to bolster the economy. The gauge tumbled 22 percent in 2008.

‘Stabilization and Recovery’

     “Enjoy’s entry into the local market reflects to a large degree the stabilization and recovery of equity markets,” Jorge Selaive and Trinidad Bone, analysts with BCI Corredor de Bolsa SA, wrote in a June 25 note. “This could create incentives for other companies to list on the exchange as a source of new financing.”
     Azul Azul, owner of soccer club Universidad de Chile, was the Santiago stock exchange’s only IPO last year, and the sale was part of a condition of the company’s concession to run the club. There were two initial listings in 2007.
     Enjoy lost 2.4 billion pesos ($4.4 million) in the first quarter of this year, compared with a 2.7 billion-peso profit a year earlier, according to a report from Larrain Vial Corredora de Bolsa SA, the Santiago-based broker managing the sale.
     Profits declined because of the opening of casinos and the increased costs of servicing the company’s debt, Barros said. He recommended buying shares at a price of up to 48 pesos.
     Enjoy forecasts 2009 earnings before interest, taxes, depreciation and amortization of 27.3 billion pesos, according to the Larrain Vial report.
     Enjoy will use proceeds from the new shares to pay existing debt and finance new projects, the report said.


Popular posts from this blog

Moving to the Suburbs: Reducciones in Recent Latin American Historiography

In 1503, the Spanish monarchy issued its first decree for the resettlement of indigenous groups in the Caribbean so that they would “live together” and “not remain or wander separated from each other in the backcountry.”[1]

As the European conquest spread to North, Central, and South America, these new settlements – known as reducciones and congregaciones in Spanish and descimentos in Portuguese – became sites of forced labor, evangelism, experimental agricultural, and refuge. Through a series of imperial policies decreed over the next decades and centuries of colonial rule, Spanish and Portuguese officials attempted to reshape the New World, including its human and natural landscapes. How colonial historians explain this process and indigenous peoples’ reactions to it is the focus of this essay.

In a review of the recent historiography of reducciones, several trends emerge that signal a shift in our understanding of the practice. As this paper will show, one common element is that …

"Open" and "Closed" Regionalism Theories

(Apr. 3, 2008) The terms "Open" and "closed" regionalism refer to the degree in which regional blocks allow nonmember nations to access their markets. In this sense, an "open region" is one with few, if any, external trade restrictions while a "closed region" can be defined as one whose external trade policies seek to restrict commerce with nations outside the region.Closed regionalism as practiced in Latin America grew out of the policy suggestions made by UN ECLAC/CEPAL school of dependency theory in the early 1960s. As discussed earlier, proponents of this policy argued that states should form regional alliances with a series of trade barriers against foreign products to foment regional industrialization and assure captive local markets for these manufactured goods. The failure of this system of integration to meet Latin America's economic goals became apparent during the 1980s and was further highlighted by the strong economic performanc…

Greetings From Gringolandia

Bloomberg Businessweek, March 28 — April 3, 2016
Susan Lamy and her husband, Jean Pierre, owned a successful interior design business in Westport, Conn., but they still worried about how they would make ends meet in retirement. “Just paying for the basic necessities was killing us, and we could see that there was no way that we would ever be able to stop working,” says Lamy. 
The search for an affordable retirement spot led the couple to Cuenca, a Unesco World Heritage site in Ecuador’s southern Andes. They settled there in 2013 and now live in a spacious apartment with a terrace overlooking the Yanuncay River. Lamy says she and her husband enjoy a high standard of living in Cuenca for around $2,500 a month, paid for by their Social Security checks: “This seemed to be the best possibility for having a really terrific life on a fixed income.” 
The combination of a subtropical climate, well-preserved colonial architecture, and low cost of living has made Cuenca a magnet for North Ameri…