Equity Good Times Roll
A bullish 2007 is forecast for Latin American equities, with a steady stream of IPOs and heavy flow in secondary trading.
The region's two main stock market indices have hit fresh highs as demand for equities outstripped supply. But more deals are on the way and a robust 2007 is anticipated, mainly in Mexico, but also in Argentina and Colombia. Brazil on the other hand has enjoyed a very strong 2006 and is likely to see issuance level off or even drop somewhat.
Although Mexico has suffered much drier spells, 2006 issuance leaves a bit to be desired. Companies raised just $1 billion compared to nearly $2 billion in 2005, and IPOs fell to two from four. Pedro Zorrilla, general manager of the Mexican Stock Exchange, says hotly-contested elections cast their pall but there are already signs of a comeback, with four listings in the pipeline. The bolsa is set to receive Casablanca Trust, the first offering by a FIBRA, which is a near equivalent to a real-estate investment trust (REIT)....
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