Oct. 1 (Bloomberg) -- Brazil’s initial public offerings may double next year as the stock market extends its best rally in six years and growth in Latin America’s largest economy accelerates, according to Bank of America Corp.

“I’d imagine the number of transactions on the IPO side to increase very meaningfully next year,” Sebastien Chatel, head of Latin America Equity Capital Markets for Bank of America, said in a telephone interview from New York. “I don’t see any reason why that couldn’t double.”

Two companies have gone public this year in Brazil, four have filed to sell shares for the first time and several more may be planning sales, according to Chatel. While the number of IPOs in 2010 will be higher than this year’s total, they will likely be smaller in size, he said.

The Bovespa index has surged 61 percent this year, spurred by cuts in interest rates to record lows, as the economy rebounded from its first recession since 2003. Economists expect growth to accelerate 4.5 percent next year, according to a central bank survey of about 100 analysts published this week.

Next year’s offerings will likely come from industries that benefit from growth in the domestic economy such as banking, retail and consumer goods, Chatel said.

The number of IPOs in Brazil plunged to four last year from the 64 companies that raised 60.5 billion reais ($34 billion) in 2007 as the global financial crisis sent the benchmark index down 41 percent and reduced investors’ appetite for emerging- market assets.

‘Appetite for IPOs’

Cia. Brasileira de Meios de Pagamento, the payment- processing company known as VisaNet, raised 8.4 billion reais in June, the biggest IPO in Brazil this year. Spanish lender Banco Santander SA’s Brazil unit aims to raise to raise as much as 13.1 billion reais by selling shares next week. Bank of America will help manage the sale with Credit Suisse Group AG, Santander and Banco BTG.

VisaNet’s shares have gained 13 percent since June. Another IPO, Tivit Terceirizacao de Tecnologia Servicos SA has fallen 13 percent since the computer-services company started trading on Sept. 29.

“There’s appetite for IPOs but if they’re not big benchmark transactions they need to be very well thought out because investors are still very focused on liquidity,” Chatel said.

Aliansce Shopping Centers

Real estate developer Direcional Engenharia SA, Brazilian clearing house Cetip SA - Balcao Organizado de Ativos & Derivativos and Aliansce Shopping Centers SA, an owner of shopping malls, have also filed to sell shares for the first time in Brazil this year.

The increasing number of IPOs may boost the real, according to Putnam Investments. The world’s second-best performing currency may climb as strong as 1.7 per dollar this month, the highest in over a year, as the share sales lure foreign investors, said Paresh Upadhyaya, a senior vice-president at Putnam.

In other Latin American countries, Chile had its first IPO in eight months in July, when casino operator Enjoy SA sold shares. There will be two more IPOs this year, Jose Antonio Martinez, chief executive officer of the Santiago stock exchange, said in July.

Chatel expects IPOs in Colombia and Peru to return this year and in Mexico next year.

“Argentina continues to be Argentina, and it’s not necessarily that safe for investors at this moment,” he said.

To contact the reporter on this story: Veronica Espinosa in New York at

Last Updated: October 1, 2009 18:17 EDT