CHILE – The Commission for the Financial Market (CMF) of Chile authorized the capital increase announced by Falabella last August. The placement contemplates the issuance of 84.3 million new shares.

The purpose of the capitalization is to finance the purchase and strengthening of Linio, one of the main marketplace operators in Latin America; advance investments in logistics and technology to create a digital ecosystem that supports the current development of Falabella; the establishment of Ikea in Chile, Peru and Colombia; and the consolidation of the operation in Sodimac Brazil.

Falabella has selected JP Morgan and Bank of America Merrill Lynch as the global coordinators of the international private placement not subject to registration in the Securities and Exchange Commission of the United States of America, while Credicorp Capital, Larraín Vial and JP Morgan Corredores de Bolsa will be responsible for the process in some Latin American countries and the public offering in Chile.

In the coming weeks the company will begin a road show process, within the framework of which it will meet with local and international funds.