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IPOs set to regain traction next year, analysts say

The IPO market in Brazil did not repeat the same success this year as it had in 2007 and 2021, when there were record IPOs on the Brazilian stock exchange, with 64 and 46 new openings, respectively. Although the adverse international scenario, driven by the start of a war between Russia and Ukraine, and the tension of an election period have hindered new issuances of shares in 2022, experts believe that next year should move the offer on the stock market of the country and out of the zero IPO score this year so far.

Some companies already express the desire to make a listing in the B3 since 2020, but interrupted or postponed plans due to the unattractive scenario. Now, depending on the economic situation at the beginning of next year, they are considering entering the capital markets for good, as is the case of Kalunga, Madero, Vix Logística, Unigel, Agribrasil, Verzani & Sandrini and Claranet, as CNN Brasil Business .

Kalunga was registered as a publicly-held company with the CVM in March 2021. Like other companies, it even went through the regulatory process to go public in 2020, when interest rates were at an historic low and were one of the drivers for the wave of IPOs in Brazil afterwards. According to the company, shesees the capital market as a way to improve its capital structure, accelerate investments in its expansion plan and perpetuate its business”.

In the wake of new business after the impact of the pandemic, Grupo Madeiro also confirmed that it is still interested in proceeding with the plan to go public, but stated that the planning depends on alignment with shareholder expectations and an attractive window for the company. onslaught.

“Grupo Madero is ready and continues to consider proceeding with an eventual IPO in 2023, however, it remembers that it has an adequate capital structure to calmly await a window for an IPO that meets the pricing expectations of the Company and its shareholders. , in the medium or long term”, he said, in a note.

Another company that confirmed to the CNN Brasil Business the intention to carry out an IPO in 2023 is Agribrasil, a Brazilian grain exporter. She had asked the CVM in October of last year to cancel the request for registration of the public offering of shares “for market reasons”, but now she has a glimpse of entering the stock market again. The company confirmed that it “continues to wait for the reopening of the IPO window to go public”.

In the logistics sector, Vix – which works with port operations, transport, warehousing, product handling, distribution, vehicle rental, charter and automotive logistics – said that it is waiting for an opportunity to resume its IPO process, interrupted in end of last year.

“We continue to monitor the market and are ready for possible moments, but an IPO process will only be resumed when and if the price level/multiples of the sector is in line with shareholder expectations. That is, at least at the levels of the last windows of last year (2021) or better”, highlighted the group.

In the services sector, the company Verzani & Sandrini may appear as a novelty on the stock market starting next year. That’s because, although an initial attempt was also left behind last year, the group said that “if market conditions are favorable, the company is considering a new attempt for 2023”.

Other novelties that may appear on the stock market next year are Unigel and Claranet. The first, one of the largest petrochemical companies in the country and the largest national producer of nitrogen fertilizers in Latin America, told CNN Brasil Business that it “remains attentive to the market’s windows of opportunity and is continuing its strategic growth plan”, after having became a publicly traded company in November 2021. Claranet, which provides technological services, also confirmed that it is monitoring the market and awaiting new chapters.

favorable scenario

Despite the pent-up interest of these and other companies in IPOs, experts stressed that the offer to issue new shares will depend on a favorable and more attractive scenario for investors – something that was not possible in 2022.

“We can highlight that there is a pent-up demand in 2021, with several companies with the bullet in the trigger and that could have gone public last year but stopped their business. If the problems of rising interest rates, inflation and the supply shock are not resolved, the supply of IPOs will be low next year as well. But if we manage to solve these problems, we will envision more positive scenarios”, said Roberto Kanter, economist and professor at FGV.

According to him, there is also a tendency for more and more new companies to start going public in the following years, as traditional and consolidated companies already have shares listed on the stock exchange.

“It is necessary to point out that in terms of IPOs, more and more mature companies have already gone public, worldwide. Today, many new companies, which made Series B and C, decide to go to the stock market, and many of them have very high volatility”, he added.

For Denis Morante, managing partner of Fortezza Partners, the stock market should not have any positive surprises regarding the entry of companies, but the market may follow an entry movement starting next year, when risk aversion becomes lower, and the repressed offer returns to active.

“I believe that the strong will come next year, that there should be something around BRL 80 to BRL 100 billion in issuances to take place, from all those companies in line since 2020 and 2021”, he highlighted.

“After the elections, there will be a definition of what the economic policy will be from 2023 onwards, so all this must go on with more force. If there is any issuance this year, it will be very punctual and utopian, from a very robust company, which needs to get money still in 2022”, he concluded.

Source: CNN Brasil

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