Brazilian equities gain ground in first half

Brazilian equities gain ground in first half

Equity IPO Capital Markets Corporate & Sovereign Strategy Economy & Policy Energy Electricity Regulation Politics Brazil

The equity market has picked up in Brazil with at least five large deals expected in the first half of the year, compared to four in the same period last year, LatinFinance has heard.

"Since the government [of President Jair Bolsonaro] began, people have seen an opportunity to return to the market after many postponements last year," said Victor Penna, research director at Banco do Brasil.

Among the highlights between January and May this year, according to Penna, Centauro earned BRL722m ($196m) from an IPO in April, the sporting goods store's second attempt to go public, while BK Brasil, which operates Burger King restaurants in Brazil, got BRL715m for its shareholders in a follow-on offering.

Penna sees the utility and retail sectors becoming more active in Brazil's equity market, especially if the government can pass the long-anticipated reforms.

"Several energy utilities are waiting for the right window to list," Penna said. "Depending on the savings the energy reform brings, we may see more entrepreneurs listing their businesses or doing additional share offerings."

In the pipeline, Neoenergia, the Brazilian subsidiary of the Spanish utility company Iberdrola, filed for an IPO earlier this month, and Carrefour Brasil is expected to come to the stock market with a follow-on offering.

The news that moves markets

Read the day's transactions and rumors right in your inbox.

Start free trial