J.P. Morgan Survey Indicates Investor Confidence in Latin American IPOs
NEW YORK -- November 28, 2012
According to a survey released today by J.P. Morgan’s Depositary Receipts (DR)
business, 70 percent of institutional investors in North America and Europe
who responded to the survey recommend that a Latin American company pursue an
initial public offering in today’s capital markets. Survey participants, who
were interviewed in September 2012, believe that despite significant
macroeconomic headwinds in Europe and China, Latin America is a region with
steadfast domestic markets and attractively-valued companies that demonstrate
significant growth potential.
“Each year we survey North American and European institutional investors, with
the aim of helping our Latin American clients better understand investor
sentiment toward companies in the region,” said Candice Teruszkin, Latin
America Regional DR Head of J.P. Morgan. “The findings from this year’s survey
may help Latin American issuers identify ways to improve their market
valuations over time and to better compete for and attract capital needed to
fund their growth.”
The survey, gathered the opinions of 40 institutional investors based in North
America and Europe. These investors held, as of June 30 2012, a combined
(approximately) $43 billion, or 16 percent, of actively managed equity in
Latin American companies^1.
Other notable findings from the survey include:
*The majority of the study’s participants believe that the Consumer Goods
(65%) and Consumer Services (60%) sectors offer the most attractive
investment opportunities, given Latin America’s growing middle class,
rising income levels and low domestic unemployment.
*Government intervention and trading liquidity are the two greatest
challenges Latin American companies face with respect to maintaining a
fair market valuation, according to 38% and 28% of survey participants,
*A majority of the study’s respondents (55%) believe that an ADR program
can help a Latin American issuer maintain a fair market valuation, citing
the benefits of improved trading liquidity and free float as well as
increased exposure to a greater number of potential new investors.
*More than one-third of the investors surveyed (35%) recommend that Latin
American companies that do not adhere to international reporting standards
do so, as a means to maintain fair market valuation.
For market information on depositary receipts and international equities,
please go to www.adr.com. More information on J.P. Morgan’s depositary receipt
services is also available on www.jpmorgan.com/visit/adr.
About the Survey Methodology
On behalf of J.P. Morgan’s Depositary Receipts Group, Ipreo conducted a
telephone survey of global institutional investors from the United States,
Canada, the United Kingdom, and several other European countries (Belgium,
France, Germany, the Netherlands, Sweden, and Switzerland) in September 2012.
In total, Ipreo received feedback from 40 participants who invest in Latin
America. As of June 30, 2012, these participants’ firms managed a combined
$807.6 billion in equity assets, $43.0 billion of which represented holdings
in Latin American companies, or 16% of all Latin American equities held by
active investment managers outside of Latin America.
About J.P. Morgan’s Corporate & Investment Bank
J.P.Morgan’s Corporate & Investment Bank is a global leader across banking,
markets and investor services. The world’s most important corporations,
governments and institutions entrust us with their business in more than 100
countries. With $18.2 trillion of assets under custody and $393 billion in
deposits, the Corporate & Investment Bank provides strategic advice, raises
capital, manages risk and extends liquidity in markets around the world.
Further information about J.P. Morgan is available at www.jpmorgan.com.
This document is for information purpose only. It is intended neither to
influence your investment decisions nor to amend or supplement any agreement
governing your relations with J.P. Morgan. J.P. Morgan shall not be liable for
any damages or costs of any type arising out of or in any way connected with
your use of the mentioned information. J.P. Morgan does not warrant or assume
any legal liability or responsibility for the accuracy, completeness, or
usefulness of any information herein provided, either no representations as to
the legal, regulatory, financial, tax or accounting implications of the matter
in this document. © 2012 JPMorgan Chase & Co. All rights reserved. Ombudsman
J.P. Morgan: Tel: 0800 – 7700847/E-mail: email@example.com.
^1 According to Ipreo
Allie Libby, +1 212-270-1714
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