IPOs Dry Up as Rousseff Rules Spur Stock Rout: Corporate Brazil
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President Dilma Rousseff’s interventionist policies are driving down stock prices and costing Brazil its position as Latin America’s biggest market for initial public offerings.
Software maker Linx SA’s 527.9 million-real ($268.4 million) IPO on Feb. 6 was Brazil’s first in nine months after just three deals in all of last year, the fewest since 2003. That compares with six in Mexico, including Grupo Financiero Santander Mexico SAB, the nation’s biggest share offering, marking the first time in nine years that Brazil didn’t have the most IPOs in the region.