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An IPO wave will continue in 2005. Fixed income markets are on an upswing. Does Brazil finally have the mature capital markets it so badly needs? Not yet.
The São Paulo Stock Exchange saw more activity in 2004
than it had in decade. Between May and November, seven
companies launched initial public offerings. The IPO wave
promises to continue.
|The Sao Paulo Exchange should
be busy with IPOs in 2005.
"The markets in general are very active. We plan to take
advantage of the moment," says Luís Frias, president of
media giant Grupo Folha, which recently reorganized its
corporate structure in readiness for an IPO (see On the Launch
Pad, p. 58). Also reportedly preparing to go public are online
retailer Submarino, airline TAM, retail chain Magazine Luiza,
highway concessionaire Ecovias, state bank Nossa Caixa and
apple exporter Renar Maçãs.
Issuers are cashing in on one of Brazil's most sustained
periods of economic stability in recent memory. Since the
turbulence of 2002, when investors feared the incoming
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