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
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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