Publish in Special Reports - Wednesday, February 10, 2016
Paul Hastings advised on the IPO of Nemak, the largest in Latin America last year. (Photo: Nemak)
Latin America 2016, the Latinvex in-depth report on the region's outlook this year.
But Mexico grows and now dominates Latin America IPO market.
BY JOACHIM BAMRUD
The value of initial public offerings in Latin America fell by 42 percent last year to $1.958 billion, with Mexico-based Nemak’s $684 million IPO the largest, according to Latinvex data.
The decline was mainly due to the lack of any billion-dollar IPO, as seen in 2014 when Colombia’s Grupo Aval raised $1.3 billion from its initial share sale. The decline in Latin America’s IPO value came as global secondary offerings from the region’s companies fell 53 percent to $7.6 billion (from 30 to 18 offers), according to Thomson Reuters data.
The IPO volume last year also was a far cry from the recent high from the recent boom-years 2010-13 when they averaged 21 per year.
Mexico led the way in IPOs in Latin America last year, accounting for six of the seven initial offers in the region.
The six raised more than $1.769 billion, an increase of 8 percent from 2014.
“Of all the economies in Latin America over the past several years Mexico has performed the best,” says Michael Fitzgerald, chairman of the Latin America practice at Paul Hastings. “There has also been the greatest amount of capital markets work from Mexico during that period.”
Nemak’s IPO in June was ...
Keywords: Argentina, Brazil, Cleary Gottlieb, Chile, Colombia, Fibra, Holland & Knight, Mexico, Nemak, Paul Hastings, Peru, SImpson Thacher