Publish in Special Reports - Wednesday, January 15, 2014
Executives of BB Seguridade at the Brazil end of the $5.7 billion IPO, the largest in the world and Latin America last year. (Photo: BMFBovespa)
Roderick Branch, a partner at Latham & Watkins, expects another strong IPO year in 2014. (Photo: Latham & Watkins)
Mexico leads in number, but Brazil leads in value.
BY JOACHIM BAMRUD
The value of initial public offerings in Latin America last year jumped 155 percent to $16.3 billion, according to Latinvex research.
That included 22 different IPOs in four countries. Mexico had the largest number, but Brazil outperformed in overall value.
“A number of factors led to the strong increase in Latin America IPOs,” says Roderick Branch, a partner at Latham & Watkins. “Broadly, local economies experienced a slowdown that was less severe compared to developed economies in North America and Europe coming out of the recent recession and thus returned to growth more robustly. Local markets have become richer, more sophisticated and more available as sources of capital. International investors flocked to invest in local businesses in a search for better growth rates compared to other economies. Political systems, market structures and companies throughout the region have earned a reputation as stable and more accessible repositories for investment. And demographic growth continues to drive capital needs. Add all of these together, and you get a high rate of IPO activity throughout the region.”
The largest deal by far was the $5.7 billion IPO by BB Seguridade, the insurance unit of Brazil’s largest bank, in April. It also managed to become the largest global IPO last year, surpassing offerings by such prominent companies as Royal Mail, Twitter and Hilton.
Another Brazilian company – retailer Via Varejo – accounted for Latin America’s second-largest IPO after it raised ...
Keywords: Avianca, BB Seguridade, Biosev, Brazil, City Express, Colombia, CPFL, CVC, Fibra Inn, Grana y Montero, Grupo Lara, IEnova, Latham & Watkins, Mexico, Peru, Sanborns, Terrafina, Volaris
Latin America IPOs (2013): The Ranking
Latin America IPOs (2013): By Countries
Latin America IPOs: The Legal Advisors