The biggest surprise in the
global IPO issuance
this year has been the resurrection of the Latin American IPO
market. After raising US$6 billion last week, Latin America has
jumped ahead of the Asia Pacific and European markets and is now
the second highest grossing region for IPOs thus far this year.
With 27.8% of IPO proceeds raised this year, Latin America only
lags behind North America (33.0%).
Latin America has benefited from the listing of several recent
large IPOs, including BB Seguridade (BBSE3.BZ), the insurance
unit of Banco do Brazil, which raised just over US$5 billion last
week, making it the largest IPO of the year. Frequent-flier unit
of Brazilian airline Gol Linhas, Smiles (SMLE3.BZ), raised US$500
million last week as well. These deals add to an already above
average year for Latin American issuance, bringing the region's
total IPO proceeds to US$8.9 billion YTD.
Latin America's market share has certainly benefited from the
slow start to the year for Asia and Europe - two perennially
strong markets for IPO issuance. Despite their sluggish beginning
in 2013, both markets look poised to rebound. Petrochemical
refiner Sinopec Engineering (SNPHK.RC) and Chinese brokerage firm
Galaxy Securities (GALAX.RC) have both announced their plans to
raise over US$1 billion each in their respective May IPOs in
what will be the largest Hong Kong listings since People's
Insurance Company of China's (1339.HK) November 2012 IPO. Europe
is also expected to see large upcoming IPOs in the second
quarter, including the multi-billion dollar London-listing of
Russian banking group VTB Bank (VTBR.LI) and the
Frankfurt-listing of German real estate developer Deutsche
Annington Immobilien (DAI.RC).
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for the latest global IPO issuance news.