September 23, 2013
After the Fed paved the way for LatAm’s debt borrowers, equity issuers including Avianca, Geopark and Tupy are preparing potential trasactions. Satisfying investors will be more challenging than in the DCM, however
Several would-be equity issuers are eager to capitalize on
the improved market sentiment seen last week. A surprise delay in the tapering
of QE lifted currencies and equity indexes and brought relief to debt issuers Wednesday.
$5.7 billion the following day, and others are now on the road.
Equity issuers, too, are aiming to get deals out the door
before they need to update their financial
numbers. Volaris priced
an IPO last week, which has traded up more than 12% as of Friday’s close.
Despite the optimism from last week, volatility still
remains the main challenge for issuers. Equity markets soared initially after
the Fed’s announcement, but have dipped since. The Bovespa and Mexican IPC each
posted a loss Thursday and Friday after rallying Wednesday. LF