LATAM Airlines Group Raises US$456m in NYSE IPO

DALLAS — LATAM Airlines Group (LA), the largest airline group in South America, recently completed a significant initial public offering (IPO) on the New York Stock Exchange (NYSE). Here are the key details:

• IPO Details: LATAM Airlines Group raised US$456 million by selling 19 million American Depositary Shares (ADS) at US$24 each. Each ADS represents 2,000 of LATAM's common shares, which trade on the Santiago Stock Exchange.
• Initial Filing: The company initially filed to raise up to US$533 million, with a proposed price of US$28.06 per ADS. However, the final pricing was lower, at US$24 per ADS.
• Market Presence: LA is the largest airline group in South America, providing passenger transport services to 148 destinations in 26 countries and cargo services to 166 destinations in 33 countries. The company operates a fleet of 336 aircraft, including 20 dedicated cargo freighters.
• Reorganization and Relisting: LA completed a reorganization process under Chapter 11 in 2022 and has now relisted on the NYSE under the ticker symbol LTM.
• Underwriters: The IPO was managed by a consortium of banks, including Goldman Sachs, Barclays, J.P. Morgan, Citi, Santander, Deutsche Bank, BNP Paribas, MUFG, Natixis, and Larrain Vial.

This IPO is a crucial post-pandemic step for LA, which returns to the NYSE with the goal of strengthening its financial situation and expanding its market footprint.

LATAM Group in Numbers

The airline group had a historic first quarter, according to the group's March 2024 operating numbers. The highlights of the report focused on transported passengers and capacity numbers, are as follows:

• In the first three months of 2024, the LATAM group transported 20.2 million passengers (77 million passengers in the 12 months to March 31), a 19.4% increase compared to the same quarter in 2023.
• This increase is attributed to a 32.5% rise in passengers transported in the international segment, a 26.0% increase in the domestic markets of Chile, Colombia, Ecuador, and Peru, and a 9.1% increase in the domestic market of Brazil.
• In March 2024 alone, the LATAM group transported 6.7 million passengers, representing a 16.9% increase compared to March 2023.

• In the first quarter of 2024, the LATAM group increased its consolidated capacity (measured in available seat kilometers - ASK) by 17.5% compared to the same quarter in 2023.
• This increase exceeded the capacity levels of 2019 by 1.2%.
• In March 2024, the group increased its consolidated capacity by 17.8%.