Hope on the Horizon

Jul 1, 2008

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.

“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 month’s 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 month’s transactions were blowouts, they were a far cry from the disastrous offerings of the first quarter.

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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