2012 Brazilian IPO review

View of Rio de Janeiro from Corcovado Mountain

Rio de Janeiro

MY INTERVIEW WITH O ESTADO DE S.PAULO NEWSPAPER – JANUARY, 09 - 2012 (TRANSLATED EXCERPT)

“NYSE expects Brazilian IPOs in 2012”

The world’s stock exchanges lost a combined US$ 6.29 trillion last year. Spooked by the crisis affecting Europe and the U.S., investors dumped stocks and sought safer types of investments. That is the current against which Alex Ibrahim, NYSE Euronext vice president and head of Latin American operations, is rowing.

The New York Stock Exchange was expecting three Brazilian IPOs in 2011, but they did not happen ...

The international situation has changed. It was all postponed to 2012. That ́s why we are expecting to have an IPO (Initial Public Offering) of a Brazilian company early this year, but I can ́t mention names. There is also the expectation of Brazilian companies with ADRs Level 1 go to Level 2, reaching more investors.

What is the advantage of having ADRs?

The interest of U.S. investor in Brazilian companies is very high. But many of them can ́t invest outside the U.S.. Therefore, ADRs are their means of investing in the country.

The Direct Edge Holdings, which owns 10% of the U.S. stock market, plans to enter in Brazil and compete with the Bovespa. How do you see that?

The competition is important because it lows the operating costs. In U.S., for example, there are five stock exchanges.

Do the Brazilian companies with ADRs have Investor Relations departments in the U.S.?

It is important. They should have, but mostly don ́t. Petrobras is the only one. In the other cases, the IR department in Brazil works with the foreign investors. But I know that two companies are planning to have their IR departments in the U.S.

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