IPOs and follow-ons moved R$126.9 billion in 2021; remember

The Brazilian stock exchange ended the year with 45 IPOs and 26 follow-ons. The market of offers this year had a turnover of R$126.9 billion, with R$65.2 billion in primary offerings and R$61.6 billion in secondary operations.

The amount was only behind the record in 2010, when IPOs and follow-ons raised R$ 149.2 billion.

Last year, B3 had 27 IPOs and 23 follow-ons, moving BRL 117.8 billion.

The biggest primary offer this year came from the sugar and ethanol producer and fuel distribution and energy generation company Raízen, on August 4, which raised R$6.7 billion. The biggest secondary offer was Vibra (former BR Distribuidora), which, on July 30, raised R$ 11.35 billion.

Daniel Bassan, CEO of UBSS BB, says that the companies, as well as others in the commodities sector, managed to have a positive performance in the year, which opened space for carrying out stock offers on the stock exchange. “One of the main factors that favored this market was the exchange rate appreciation.”

Leonardo Alvarenga, director and analyst at Investmind, says that the US currency appreciated due to greater distrust of foreign investors in relation to the uncertainties in the country.

The sectors that stood out the most were technology, with 11 IPOs and four follow-ons, and healthcare, which priced five primary offerings and three secondary offerings.

See below the survey carried out by Einar Rivero, from Economatica, on the variation of companies that carried out an IPO this year, at the request of the CNN Brasil Business. It is worth noting that the survey includes Assaí, which despite not having made a public offering, made a listing on B3.

Main offers

Read what analysts think about the offers that have risen most since the IPO or listing this year:

assai

On December 31, 2020, the shareholders of GPA and its subsidiary Sendas (Assaí) approved at their respective extraordinary general meetings a proposal for a corporate reorganization to spin off the Assaí unit, which facilitated the company’s listing process.

The split between the companies, which took place on February 26, is one of the reasons for the appreciation of the shares, experts believe. On that day, Grupo Pão de Açúcar shareholders received Sendas assets in the same proportion as their participation in GPA.

Between the listing and December 8th, the papers appreciated 392.62%.

Intelbras

Intelbras concluded its initial public offering on February 3, with a turnover of R$1.3 billion, according to documents issued by the Brazilian Securities Commission (CVM). Since then until December 8, the company’s shares appreciated by 73.91%.

The company priced the shares at R$15.75 each – close to the bottom of the indicative range between R$15.25 to R$19.25 per asset.

The funds were earmarked for acquisitions, expanding its industrial capacity, expanding software and hardware solutions and expanding retail channels, according to the IPO’s preliminary prospectus.

Alexsandro Nishimura, economist, head of content and partner at BRA, an accredited firm of XP Investimentos, says that despite having had an IPO without much of a spotlight, perhaps because it took place amid a window full of options, the company’s shares had a strong debut and continued the movement of constant appreciation until September, when it almost doubled its value in relation to the IPO.

In the market’s view, the company presented resilient results, even with the most challenging scenario from the point of view of increased costs, international freight and also the stabilization of the exchange rate at a level considered to be high.

“Thus, the company has been able to readjust its prices and keep its gross margin stable. The company also used the money raised in the offer to make acquisitions”, commented the economist.

Let’s go

The heavy vehicle rental company Vamos handled more than R$ 1 billion on January 29th.

Of the total raised, R$ 890 million went to Vamos. The company used the money to finance the fleet for the activity of leasing trucks, machinery and equipment.

The remaining R$296 million went to Simpar, which took advantage of the transaction to sell part of its shares in the subsidiary.

Investors saw that Vamos is well positioned to be a giant in the heavy-vehicle rental industry, able to navigate a “blue ocean,” says Nishimura. That is, in an underexplored market, as the country’s truck rental sector has low penetration.

good harvest

The Boa Safra IPO raised R$459.9 million. The pricing of the paper was on the floor of the range, at R$9.90. The shares appreciated 49.19% between April 28 (when the primary offering took place) and December 8th.

Of the amount collected, half was used to reinforce cash and working capital, while the other 50% was used for organic growth and potential acquisitions.

Nishimura claims that the shares appreciated because the company is a leader in the production of soy seeds in Brazil and a technological reference for the sector.

“The market sees that the company is positioned to grow even more amidst the secular growth trend of soybeans in Brazil. The quarterly results presented after the IPO were also well seen by the market, with increases in revenue, Ebitda and order backlog”, says the economist.

Vittia

Vittia held a primary public offering on September 2, and handled R$359 million. The price per fixed asset was BRL 8.60

According to the IPO prospectus, 455 of the amount was earmarked for acquisitions, 20% for expansion; 15%, modernization.

The company suspended its operation on August 18 due to “adverse market conditions”. Soon after, it resumed the IPO, and up to December 8, its shares had appreciated 45.18%.

Vittia is also another company related to agribusiness, operating in the development, production, sale and distribution of nutrition and plant protection products through special fertilizers and biological defensives.

“The first quarterly result post-IPO was also seen positively, with strong growth in the main lines of the balance sheet”, says Nishimura.

Future

Next year’s market will be challenging for the universe of capitals. Vítor Saraiva, responsible for the variable income area in the capital market at XP, points out that there will be volatility due to the elections and an increase in the basic interest rate until the end of the cycle to hold the IPCA (Extended Consumer Price Index) .

“We believe that, with a larger and more vigorous market, it will be open to good companies regardless of the offer window”, says Saraiva. “However, we expect a really more challenging market for IPOs. Operations should be concentrated at the beginning of the year and, mainly, after the elections”.

Bassan is also of the same opinion as the XP analyst, “We will see many companies considering coming to market with primary offerings by the end of Q1 2022, a window in which is expected to be less volatile and viable for pricing offers from already listed companies ”.

Altogether, there are 49 offers being analyzed by the CVM (Securities Commission).

**We made a mistake: there was an error in the title of the article, which mentioned R$126.9 trillion instead of R$126.9 billion.