Uncertainty stalls Mexican IPOs
February 1, 2019 |
Equity market waits for more clarity on the government's economic policies, source says
Mexico's IPO pipeline is filling up, but the deals are not expected to come to market until the second half of the year, LatinFinance has heard.
"There are several deals waiting until the government gives more direction and clarity about how it plans to boost economic growth," said Miguel Gallardo, head of the banking and finance practice at BGBG Abogados.
"There is still a lot of uncertainty about how the administration will manage the energy and infrastructure sectors and whether it will maintain Pemex and CFE contracts and open the sectors to foreign investment," he said.
The government announced earlier this month that it will lower taxes on the earnings from IPOs to 10% from 30% to encourage more companies to list shares on the Mexican stock exchange.
Coppel called off a $1bn IPO in October last year, but the retailer and consumer lender could try again before the end of 2019. Banca Mifel also abandoned its IPO plans in October, but it could return with a $350m stock debut.
In addition, three or four Fibras, which are similar to real estate investment trusts, or REITs, in the United States, from the energy and agriculture sectors are planning to sell shares on the BMV.