Brazil’s IPO schedule is still busy despite the turbulent market | Instant News


SAO PAULO (Reuters) – Forty-five Brazilian companies are still awaiting approval for their planned initial public offering, 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 firm Rio Alto Energias Renovaveis and Rio Energy Participacoes, clothing retailer Avenida, provider of technology solutions Infracommerce and healthcare provider Bionexo, according to documents on the website of securities industry regulator CVM.

The Brazilian real has lost nearly 30% this year against the dollar and the Bovespa stock exchange index is down 3% this year. Investors fear Brazilian president Jair Bolsonaro could increase political interference in state-controlled companies after his decision to replace the CEO of oil company Petroleo Brasileiro SA.

The sharp rise in COVID-19 infections, with lockdowns expected in some of Brazil’s largest cities, is also expected to impact growth.

The company continues to apply to go public, however, drawing demand from investors who need to diversify away from fixed income, as interest rates remain at record lows.

Reporting by Tatiana Bautzer; Edited by Sonya Hepinstall

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