The market is showing itself to be quite healthy,
says Evandro Pereira, head of LatAm capital markets at UBS
Pactual, which had lead roles in all of last months major
IPOs. We saw three deals getting priced within their
stated [pricing] ranges in roughly six business days, he
adds. Pereira notes that while not all last months
transactions were blowouts, they were a far cry from the
disastrous offerings of the first quarter.
Hope on the Horizon
A spate of June offerings – three IPOs and three follow-ons – sparked hope that the buyside may be returning to LatAm equity new issues, albeit cautiously. If conditions continue to improve LatAm could be in for a pickup in deal activity in the second half of 2008.
A pickup in the new issue market will depend on global market
conditions, say bankers, who add that there are plenty of
quality assets seeking equity financing that would make for
strong candidates. The publicly available pipeline is
somewhat polluted right now, says Pereira, referring in
particular to Brazil, where the CVM has a running list of deals
under consideration. There are lots of...
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