Latin Equity Issuers Brave the Storm

Despite some of the worst losses for LatAm bolsas in recent memory, issuers are lining up to sell stock. Two Brazilian real estate firms filed Friday with Brazil’s CVM. Construtora Tenda is planning an IPO on the Novo Mercado through Itaú BBA, while BR Properties, a real estate investment vehicle targeting office and warehouse spaces, also filed an IPO. The Bovespa finished Friday 1.13% stronger after a bloody week, while Mexico’s IPC ended 2.58% higher. Both were helped by a rebound in US markets, but dedicated equity investors have been severely battered and sentiment is cautious. BR Properties is owned by private equity firm GP Investments and co-investors Lehman Brothers Real Estate Partners, Sandell Asset Management, Tudor Group, Banco Safra, Talisman Special Purpose Fund, The Peter Malkin Family and Belfer Management. Credit Suisse is leading that offer. They may face valuation challenges as investors appear to be experiencing sector fatigue.