BMV IPO Surge Predicted

Investors, bankers and regulators are hopeful that Mexico’s domestic equity market will see new issuance this year. IPOs have been notoriously infrequent, even during good times, with none last year. But the economic recovery and a recent rule change allowing greater flexibility for the country’s pension funds to invest in individual stocks should help. “This is an important moment. This year could be important for big and medium size companies,” says Javier Artegas, strategic planning director at the Bolsa Mexicana de Valores. Artigas expects there will be 2 IPOs this year from large companies, and 4-5 from mid-cap sized companies, along with 2-3 more private equity-linked CCDs, and a few other CCD deals. BBVA Bancomer’s head of DCM Ricardo Cano says there could be between 5 and 10 IPOs this year. They were speaking on a panel at the 5th Annual LatinFinance Cumbre Financiera Mexicana Thursday in Mexico City.