25 October 2007
Grupo Clarín, Argentina's biggest media group, has raised $463 million (£231.5 million) in an initial public offering on the London and Buenos Aires stock exchanges.
The media group is the first Argentinian company to list on the London Stock Exchange, and the flotation is the largest in Argentina for a decade. Dealing in the shares turns unconditional this morning.
The price of $18.5 per global depositary share, or 29.14 pesos per Class B share, for last Friday's sale of 17.5 per cent of its stock gives Grupo Clarín a $2.6 billion market valuation. The media group is the owner of Cablevision the largest Cable operation in the region in terms of subscribers and Clarin, Latin America’s biggest selling daily newspaper. It also owns internet and other TV interests.
"This equity offering marks the start of a new chapter for Grupo Clarin, as we seek to leverage our leading position and access to growth opportunities in the media industry in Argentina and Latin America to create value for all shareholders," said Hector Horacio Magnetto, Chairman and Chief Executive Officer of Grupo Clarin.
As part of the IPO, Clarin placed 19.25 million GDSs with institutional investors and 11.5 million Class B shares in the Argentine market. Proceeds from the sale will be used pay down the company's debt and to fund expansion