Category: Equity

Lima’s general stock index (IGBVL) rose 4.04% Monday morning, reaching record highs, on the news that former president Alan García had clinched victory from nationalist Ollanta Humala. Meanwhile, the Peruvian currency, the nuevo sol, strengthened 0.82% against the dollar to levels not seen since the beginning of 1999. With 92.5% of the second-round presidential ballot counted, Alan García of Peru’s center-left political party, APRA, had won 53.20% of the votes against 46.79% polled by Humala. The markets were clearly pleased and relieved that the votes of the middle class and business community won out against the populist choice.

São Paulo’s stock exchange, Bovespa, is considering launching an IPO of its shares next year. Bovespa is Latin America’s largest stock exchange and the IPO would allow the exchange to invest and compete with exchanges in the US and Europe where many Brazilian companies are listed.

Brazilian financial group Brascan is to launch an IPO via Bovespa’s new market. Credit Suisse and UBS are coordinating the sale. Grupo Brascan owns a bank, an insurance brokerage company and has holdings in agribusiness, forestry, mining, energy, construction, and real estate.

Suez Energy Andino, the Chilean subsidiary of French utilities group Suez, is to offer the remaining stock that it holds in local power company Colbún on the Santiago Stock Exchange. Last week Suez sold a 9.5% stake in Colbún to industrial conglomerate Grupo Angelini for almost $223 million; it holds a further 9.5% of the company’s stock.

Mexico’s second-largest cable company Cablemás cancelled its IPO after failing to get investors interested at the right price, according to the company. The rise in US interest rates last week put a dampener on emerging markets and saw stock markets throughout Latin America take a tumble. Cablemás had been hoping to raise over $200 million from the offering.

Brazilian sugar-cane processor and ethanol producer Cosan is likely to issue ADRs on the New York Stock Exchange within the next 18-24 months, says the company. Surging international oil prices have boosted the demand for ethanol, the sugar-based alternative energy source widely used in Brazil, and has encouraged the company to push forward with expansion plans. Cosan raised $450 million at the beginning of the year via the sale of perpetual bonds.

Peruvian electricity distributor Edelnor is to sell three- and seven-year local-currency bonds worth $4.6 million (15 million soles) via the Lima Stock Exchange today, Friday. The offering was structured by Banco Continental.

Brazilian low-cost airline Gol is to sell $12.5 million of preferred shares in the form of ADS on the New York Stock Exchange as well as in Brazil. The share sale will comprise $2.5 million via a primary offering and $10 million via a secondary offering. As well as the share offering, Gol will be also be hoping to place $115 million of 20-year convertible bonds.

The stock exchanges of Brazil (Bovespa) and Mexico (BMV) say they hope to complete integration by next summer to allow investors in both countries to buy stocks listed on either exchange, instead of via New York. The first stage of the plan to integrate the exchanges was agreed last November. In time, the hope is to extend integration to include other markets in Latin America and ultimately create a regional capital market.

Brazil’s largest fixed-line telecoms operator, Telemar, has filed with the US Securities and Exchange Commission (SEC) to launch an IPO for up to $997.5 million of common shares in the form of ADS. The IPO is part of a restructuring plan in which Tele Norte Leste Participacoes’ shareholders will exchange their stock for Telemar’s newly issued common shares, making Tele Norte Leste part of Telemar.