LATAM Airlines Group (Uplisting) Plans $533 Million IPO for July 25th (LTM)

LATAM Airlines Group (Uplisting) (LTM) plans to raise $533 million in an initial public offering (IPO) on Thursday, July 25th, IPO Scoop reports. The company will issue 19,000,000 shares at a price of $28.06 per share.

In the last 12 months, LATAM Airlines Group (Uplisting) generated $12.3 billion in revenue and $720 million in net income. The company has a market cap of $8.5 billion.

Goldman Sachs, Barclays, J.P. Morgan, Citigroup, Santander, Deutsche Bank Securities, BNP Paribas, MUFG, Natixis and LarrainVial acted as the underwriters for the IPO and Morgan Stanley was co-manager.

LATAM Airlines Group (Uplisting) provided the following description of their company for its IPO: “(Note: This is LATAM Airlines’ public offering of American Depositary Shares (ADS) on the New York Stock Exchange. The selling shareholders are offering 19.0 million ADS. Each ADS represents 2,000 common shares. The company will not receive any proceeds from the sale of the ADS. LATAM Airlines’ common stock  is listed on the Santiago Stock Exchange and on the Chilean Electronic Stock Exchange under the symbol “LTM” – the prospectus says. The public offering price of US$28.06 per ADS is the as-converted price of the Ch$12.78 per share on the Chilean Stock Exchanges  on July 17, 2024.) We are the largest airline group in South America, with over twice the number of flights of any other airline group in the region, and one of the 10 largest airline groups in the world, as measured by the number of flights operated by us in the 12 months ended March 31, 2024. (Incorporated in Chile) For the three months ended March 31, 2024, we were ranked as the number one or two – No. 1 or 2 – carrier by market share in every major aviation market in South America where LATAM group operates domestically, and we also maintained the largest international network to and from South America with long-haul transcontinental service to destinations across North America, Europe, Africa and Oceania. Given our relative scale and reach as compared to other carriers in the region, we believe no global airline is more important to its home market than LATAM group is to South America. Our global operations are strengthened by the combination of our cargo and passenger business, key strategic partnerships, various code-sharing agreements, commercial agreements and a joint venture agreement with Delta Air Lines, Inc. (“Delta”), which broadens our reach and has recently been expanded to include Ecuador and our cargo affiliates. As of March 31, 2024, we are the largest air cargo group carrier in South America, as measured by our cargo fleet, and play a key role in the transportation of essential goods, supporting supply chains and export industries. We also operate LATAM Pass, which is the largest frequent flyer program in South America. According to publicly available information, LATAM Pass is the seventh largest frequent flyer program in the world by number of members. As of March 31, 2024, the LATAM group provided passenger transport services to 148 destinations in 26 countries and cargo services to 166 destinations (18 of which are cargo-only) in 33 countries (7 of which are cargo-only), with an operating fleet of 336 aircraft, including 20 dedicated cargo freighters, and 36,477 employees. LATAM group’s origins date back to 1929 when the Chilean government originally founded LAN Airlines S.A. (“LAN”), which was Chile’s flag carrier. Following years of significant expansion, LAN merged with TAM S.A. of Brazil in 2012 and was renamed LATAM Airlines Group S.A. As a result of the unprecedented impact of COVID-19 on the global economy and the aviation industry in 2020, LATAM Airlines Group and several of its affiliates initiated a restructuring process that has now improved the group’s competitive positioning. As part of the restructuring process, we implemented various cost savings initiatives, including significant fleet cost reductions, headcount reductions and overall streamlining of our business processes to achieve over $1.3 billion in recurring annual cost savings. As a result of these cost savings and a structurally lower cost base, our cost structure is significantly lower than the cost structures of the global full service carriers with which we compete. Additionally, upon emergence from our restructuring process during the fourth quarter of 2022, we improved our capital position, with our other financial liabilities current and non-current decreasing 37% and our Adjusted Gross Debt decreasing by 39%, compared to when we initiated our restructuring process during the second quarter of 2020. For a reconciliation of our Adjusted Gross Debt to our financial debt and lease liabilities in accordance with IFRS, see “—Summary Historical Financial and Other Data.” The South American aviation market competitive dynamics have also become more favorable following the pandemic, with many airlines exiting our major markets, which has further solidified our position as the largest airline group in the region. As a result of our growing leadership in South America and the benefits from our restructuring process, we are generating strong financial results. Passenger Operations. We are the only airline group with a domestic presence in five South American markets, which include Brazil, Chile, Colombia, Ecuador and Peru, as well as regional flights and long-haul operations to four continents. We are ranked as the number one or two carrier by market share across all our domestic South American markets. We are also ranked as the number one carrier by capacity share within South America with two times the capacity share of the second largest carrier, as well as from South America to North America and to the Oceania region. We are ranked as the number three carrier by market share from South America to Europe, marginally behind two European carriers. We provide a premium product and service to our passengers through our hub-and-spoke model, the model primarily used by other global full service carriers around the world. We operate three classes of service, including our premium business class product with lie-flat beds on long-haul transcontinental flights. In addition, we offer our passengers other amenities, such as award winning food and beverages, in-flight entertainment with exclusive content and Wi-Fi access across the majority of our narrowbody fleet. We also provide our premium business class and high value passengers on international flights access to modern VIP lounges located at major airports across the world. Our passenger fleet is the largest in South America and consists of 316 aircraft, including 258 narrowbody aircraft (Airbus A320 family) for regional flying and 58 widebody aircraft (Boeing 787, Boeing 777 and Boeing 767) for long-haul international flying. In the last twelve months ended March 31, 2024, we transported approximately 77 million passengers, which is more than double that of the second largest carrier in South America over the same period.   Cargo Operations. Our cargo business is the largest in South America with significant domestic and international operations run by LATAM Cargo in Chile and cargo affiliates in Brazil and Colombia. We transport cargo through our fleet of 20 Boeing 767 dedicated freighter aircraft and in the belly space of all 316 of our passenger aircraft. Our cargo operations are highly synergistic with our passenger business as we are able to maximize cargo in the belly of passenger aircraft by strategically scheduling our dedicated freighter flying to feed into our global passenger routes to maximize our revenue opportunities. The United States is the main market for cargo traffic to and from South America, and we have headquartered our international cargo operations in Miami, Florida, which is the main U.S. gateway to South America. We also utilize passenger flights to and from Atlanta, Boston, New York, Los Angeles and Orlando for cargo and operate our seasonal dedicated freighter services to Chicago. In Europe, we transport cargo to and from South America and numerous destinations, including Barcelona, Lisbon, London, Milan, Paris, Rome, Frankfurt, Madrid, Amsterdam and Zaragoza. In the twelve months ended March 31, 2024, we transported approximately 951,000 tons of cargo across the world.   Frequent Flyer Program. LATAM Pass is the largest frequent flyer program in South America with more than 45 million members, which is nearly double the size of the second largest program in South America, and is estimated to be the seventh largest frequent flyer program in the world. Our frequent flyer program is a strategic asset and a core source of value that differentiates us from other carriers in South America and throughout the world. LATAM Pass has commercial partnerships with the leading financial institutions in each market to offer our customers access to a variety of co-branded credit cards, which provide us with significant cash flows tied to everyday consumer spending. Our key financial partners include ItaĂş, Banco Santander, Livelo, Banco de CrĂ©dito del PerĂş, Banco de Bogotá and Banco de Occidente, among others. We also have many commercial partnerships with other global airlines, such as Delta, British Airways, Cathay Pacific, Iberia, Lufthansa, and Qatar Airways, among others, and with over 100 commercial partners, such as Disney, Booking.com, Shell, Cabify and Terpel, all of which enhance our value proposition to customers and expand our reach to many other global markets where we operate. In 2023, our loyalty program LATAM Pass was recognized as “The Best Program of the Year” by the Frequent Traveler Awards. Note: Net income and revenues are for the 12 months that ended March 31, 2024. “.

LATAM Airlines Group (Uplisting) was founded in 1929 and has 36477 employees. The company is located at Av. Presidente Riesco 5711, Las Condes, Santiago, Chile and can be reached via phone at +56 (2) 2565 3844 or on the web at https://www.latamairlinesgroup.net/.