2012 IPO Outlook for Latin America

Alex Ibrahim, Head of Latin America, Caribbean and Bermuda regions for NYSE Euronext Listings discusses the first IPO for 2012 of a Latin American company on the NYSE, his view on general IPO trends from the region and his IPO outlook for the rest of the year.

Headliners:

  • NYSE Lists first Latin American IPO for 2012 Cementos Pacasmayo, the largest cement company in Latin America. This listing opens the market for future IPOs from the region
  • Listing in the U.S. provides Latin American companies access to the largest global market, a strong pool of liquidity and a diverse investor base. Companies gain visibility on a global scale.
  • Large interest from U.S. investors in companies from Latin America – $4 billion traded each day on NYSE
  • According to NYSE Euronext, the pipeline of IPOs from Latin America in 2012 is strong. Could see deals from Argentina, Brazil, Chile, Columbia, Mexico and Peru.

Other thoughts:

While the U.S. financial system suffered setbacks over the last couple of years, Latin America came through the crisis relatively unscathed. Countries such as Brazil, Chile, Colombia and Peru, are growing at their fastest clips in years.

These are exciting times in Latin-America’s markets. Local stock markets are performing well, unemployment is relatively low, and companies are growing, hiring and executing their business plan. That make them attractive to US and global investors.

Latin American’s companies gain a great deal from being listed in both the NYSE. A listing on the NYSE helps Latin American companies increase liquidity by giving them access to a much larger, more diversified and more global shareholder base.