Deals
Morgan Stanley Sees Record Brazil IPO Dry Spell Lasting All Year
- Ibovespa’s 2016 surge isn’t enough to end 14-month drought
- Five secondary offerings may price by year-end, firm says
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Brazil’s record 14-month dry spell for initial public offerings will probably last at least through the end of this year, Morgan Stanley said, even after the nation’s stock market surged more than any other major exchange in 2016.
The only equity offerings likely to be priced this year are from firms that are already public, Eduardo Miras, co-head of Brazil investment banking for New York-based Morgan Stanley, said in an interview this week. He estimated that about five such deals are in the pipeline, all restricted to institutional investors. Such sales usually can be completed in two weeks, while deals that include retail buyers can take longer than two months, exposing the company to more market risk, Miras said.