Bolsa Soars to Record High Amid IPO Optimism: Mexico City MoverJonathan J. Levin
Bolsa Mexicana de Valores SAB, the operator of Mexico’s securities exchange, surged the most in a month amid rising optimism that the bourse will profit from an increase in equity offerings and trading volume.
Shares soared 4.4 percent to a record 34.04 pesos at the close of trading in Mexico City, adding to their 45 percent advance in 2012. The benchmark IPC index of 35 Mexican stocks rose 1.4 percent.
Companies are lining up to sell shares on Latin America’s second-biggest stock market after equity issuers raised a record amount last year, led by a $4 billion sale from Banco Santander SA’s Mexico unit. The exchange has five companies seeking to carry out initial public offerings in the coming months, Bolsa Chief Executive Officer Luis Tellez told reporters Dec. 5 at an event in Mexico City.
“It’s being helped a lot by the outlook for issuance,” said Luis Rodriguez, the director of research at Casa de Bolsa Finamex SAB in Guadalajara, Mexico. Last year’s sales “were significant, and we expect more this year.”
Organizacion Cultiba SAB, the bottler of PepsiCo. Inc. soft drinks in Mexico, is seeking to raise more than $300 million in a follow-on equity offering, according to two people with direct knowledge of the matter who asked not to be identified because the discussions are private. Real estate investment trusts are also adding to the issuance pipeline for 2013, with Trustee Asesor de Activos Prisma SAPI filing to carry out an IPO this year and Fibra Uno Administracion SA seeking to hold a follow-on sale.
The exchange installed a new trading engine in September to help lure high-frequency traders to the market. Equity transactions surged 76 percent to 19.7 million operations in 2012, with volume climbing 17 percent. High frequency traders use computer programs to automatically execute fast-paced trading strategies.