UPDATE 1-Chile Cencosud sets ADR price at 2,600 pesos per share

(Adds details on investment plan)

SANTIAGO, June 21 (Reuters) - Chile's Cencosud set the price of its U.S. initial public offering at 2,600 pesos ($5.19) per share as the retailer raises funds to pursue a $1.28 billion investment plan this year to open stores and malls in Latin America.

Cencosud will join the ranks of the 11 other Chilean companies currently trading American Depositary Receipts. Bank CorpBanca in late 2003 was the last local company to list in New York.

Cencosud will offer 105 million American Depository Shares on the New York Stock Exchange, allowing the company to raise up to 273 billion pesos, or some $544.9 million, as part of a broader capital increase.

Shareholders approved Cencosud's capital increase for up to 270 million shares, of which 10 percent or 27 million shares, are reserved for the company's stock option plan.

The proceeds will be used to pay down debt and fund recent acquisitions.

The diversified retailer, which is listed on the Santiago Stock Exchange, the Bolsa Electronica de Chile and the Valparaiso Stock Exchange under the symbol "CENCOSUD," intends to list its ADSs on the New York Stock Exchange under the symbol "CNCO."

J.P. Morgan Securities and UBS Securities are acting as the lead underwriters and joint book-running managers of the offering.

Cencosud expects revenue to reach $18 billion this year. ($1 U.S. dollar = 501.00 pesos) (Reporting by Anthony Esposito; Editing by Ryan Woo)