Business

Brazil IPO schedule still busy despite market volatility

Forty-five Brazilian companies are still waiting for approvals for their plans for initial public offerings

Event with ringing bell marked Mobly's initial public offering in the amount of BRL 812 million. Photo: Cauê Diniz / Courtesy
  • Five new IPOs were requested this week by Rio Alto Energias Renovaveis, Rio Energy Participações, Avenida, Infracommerce and Bionexo;
  • Companies continue to file to go public tapping demand from investors who need to diversify from fixed income

Forty-five Brazilian companies are still waiting for approvals for their plans for initial public offerings, documents showed on Friday, signaling the IPO market remains active despite the threat of stronger government intervention in the economy.

Five new IPOs were requested this week by energy companies Rio Alto Energias Renovaveis and Rio Energy Participações, apparel retailer Avenida, tech solutions provider Infracommerce and health services provider Bionexo, according to documents on the securities industry regulator CVM website.

READ ALSO: IPOs are on the rise in Brazil thanks to historically low interest rates

The Brazilian real has lost almost 30% this year against the dollar and the benchmark stock exchange index Bovespa is down 3% this year. Investors are worried that Brazilian president Jair Bolsonaro might increase political interference in state-controlled companies after his decision to replace the CEO of oil company Petrobras.

A sharp rise in COVID-19 infections, with lockdowns expected in some of Brazil largest cities, is also expected to affect growth.

Companies continue to file to go public, however, tapping demand from investors who need to diversify from fixed income, as interest rates are still at the lowest level on record.

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