EQUITY HOUSE - Tough Times

Jan 19, 2012

Itaú BBA

BBankers may have thought that the market for LatAm equity issuance was tough in 2010, but it was even rougher in 2011 when international market disturbances exacerbated regional discord on pricing to cause trouble for everyone, particularly IPO issuers.

Deals were put off indefinitely, pulled on the night of pricing, or priced below their target ranges. Nearly shares traded down after issues as international investors turned their backs on the local Brazilian growth stories that had previously fueled the IPO market.

Continued uncertainty for 2012 loomed in December, with the European debt situation still unresolved and risk aversion still high.

No ECM shop in the region was immune to these events. However, some deals were labeled successful in a relative sense, and Itaú's investment banking unit had a hand in quite a few of them.

"We expected another record year, and it ended up slightly different," says Fernando Iunes,...

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