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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