Dufry to launch Latin American IPO

John Gallagher

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Just months after its acquisition of South America’s biggest travel-retail operator Brasif, Dufry Group is to launch a public offering for its business in the region

Swiss travel retailer Dufry Group is planning to launch an IPO of its South American operations on the Brazil and Luxembourg stock exchanges.

The company’s Bermuda-based subsidiary Dufry South America (DSA) will be the platform for the IPO, which will combine a share offering on the Luxembourg stock exchange and an offer of depositary receipts on the Brazilian stock exchange.

Dufry owns 80% of DSA and will keep at least a 51% controlling stake in the business after the IPO. DSA at present manages the operations of Dufry do Brasil (the former Brasif duty-free shops), the company’s duty-free operation at Bolivian airports and part of the company’s retail activities in the cruise ship market.

In a statement the company said it was "very excited” about the IPO, and that the transaction would strengthen the capital basis of the group for further growth, either organically or through acquisition.

RAVENFOX.COM SAYS: This move from Dufry clearly indicates that the Swiss operator is still on the acquisition track. Company CEO Julian Diaz has said on several occasions that the global ambition of the company is to become the biggest duty-free operator in the world. The South American IPO is another indicator that the Swiss operator is willing to generate more capital to ensure that the growth momentum does not falter. Although the company has stated that growth may also come organically, the Dufry new business development team will be actively looking at new ways of investing the proceeds of the IPO throughout South America.