October and November were studded with some of the year's
best and worst IPOs, setting the stage for a choppy first
quarter. Investors continue to push back on illiquid issues,
especially from entities with questionable stories. However,
bankers say the bull run is far from over for LatAm ECM, though
buyers will be increasingly selective.
In the last quarter, investors forced valuations to or below
the bottom of the filing range. In some cases, like Laep, a
private equity firm that holds the assets of Parmalat Brasil,
this meant 45% below the initial mid-point. The company had
originally hoped to sell 78 million shares at 11.50-15.50
reais. The deal was delayed three days and chopped to a range
of 8.50-11.50 reais, only to price at 7.50 reais. Helbor, a
real estate company, and Agrenco, an agriculture business, had
similar problems, and had to slash valuations to...
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