Oil Services Seen Fuelling BRL Equity

Oil services providers should headline the next wave of Brazilian IPOs, say investors. With Petrobras and others set to spend billions on Brazil’s recent oil discoveries, companies in that field would list, once market volatility subsides, and buyers and issuers can get closer to agreement on pricing than earlier this year. “Some Brazilian companies are now becoming large enough to become interesting for stock market listings,” says Emilio Cattaneo, managing partner at CFS Partners, an advisory firm specializing in cross-border M&A. There is demand for equipment and consultancy, he says, and notes that renewable energy could also be a source of new IPOs. “The next round of IPOs in Brazil, you will see more related to the Petrobras food chain,” Chris Palmer, equity portfolio manager at Gartmore, tells LatinFinance. Cattaneo spoke at the LatinFinance Latin America Europe Investors Forum this week in London.