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Why does Falabella not raise the stock market?


Market representatives argue that there is also uncertainty about a strong entry into e-commerce.

At the end of July, Falabella shares traded at around $ 6,000. However, following the announcement of the purchase of Linia and the increase in capital which the company would devote to financing this and other investments, the stock crashed and failed to recover from it.

Even after the shares were placed in the framework of the recapitalization on 19 October, the price of the paper still failed to be achieved.

At the end of Friday, in the amount of 5,215.8 US dollars, the address is deducted by 1.35% from the placement on the stock exchange. From the day before the announcement of the operation, the fall reaches 12.05%.

The purchase of Linio and the announcement of the alliance with Google to enter the electronic payment business were, according to local market agents, good choices as they strengthen the company's position with regard to the progress of e-commerce. So why the action could not be returned?

They point to the overall overall performance of the sector from the market. "In general, the retail sector is showing poor results in Chile due to modest data on consumption and employment, which is not clear that they will increase significantly in 2019," explains María Luz Muñoz, the strategist of the strategic Nevas tribe. this affected the results of Falabella and Cencosud. According to Rene Le Fort, an MBI analyst, the economic environment in the country did not support good results in the company. "Consumption has not gone well and affects the entire sector," he says, adding that the "immediate danger of Amazon" is affected by the entire sector.

This particular point still causes some doubts, operators say. Although Falabella is actively preparing for the entry of international e-commerce players, questions remain as to how the dynamics of retail turnover will change with the arrival of Amazon and what this will mean for the company's results. In addition to the expected quarterly reports on the Falabella horizon, Muñoz has several risk sources. Added to e-commerce uncertainty, "there are short-term risks in the integration of Linia and then on Ikea's arrival".


Last week, the period of subscription of the most appropriate option for recapitalization of the company ended, which ended with the acquisition of 12.3 million shares by controllers.

Considering that 62.1 million documents were placed on the stock exchange auction, 84.3 million shareholders were approved, while the remainder was added to 9.9 million shares. Although it is expected from the market that this amount could cause some price pressure, taking into account that this could result in an increase in the offer of Falabella shares when they are sold, operators say that this would not have a major impact.

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