The region-wide push for more and better infrastructure in
Latin America - and particularly the Andean region - has been
welcome news for construction companies.
Corporate with the best equity market strategy; Andean corporate with the best capital market strategy
An Andean infrastructure push is spurring business for construction companies — and raising their chances in the markets
But for Peruvian firm Graña y Montero, which operates
mainly in Peru, Chile and Colombia, it has also created a
problem, albeit a good one: choosing which projects to take
"The difficult part, always, is being very disciplined at
the moment of adjudication," says Mario Alvarado, chief
executive of Graña y Montero, of the bidding process for
infrastructure projects. "The temptation of getting a project
is strong, so discipline and patience is something that's
difficult to hold onto in this type of business."
The company's position in a critical industry for the Andean
countries spurred interest for its US listing last year. The
firm raised $474 million in an IPO of American Depositary
Receipts in July. Strong oversubscription pushed the deal
larger than planned, and...
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