More IPOs in 2011: Peru Bolsa

Peru’s stock exchange should see 3-6 IPOs this year, its CEO says. “This year we expect a larger number of IPOs,” Francis Stenning tells LatinFinance. Last year saw just one, fishery operator Exalmar, but Stenning says two factors support more issuance in 2011. Economic growth in Peru has been exceptional over the last few years, and this is now translating into small and medium-size companies needing growth funds. Interest rates are also rising this year from historic lows last year that made debt funding very attractive, and this year more companies should opt for equity. The integration with the Santiago and Bogota bolsas should also help by encouraging liquidity. This process should be finalized around May 1, Stenning says, with an official announcement of the date coming soon. After the tie up, the next project on the stock exchange’s agenda is to proceed with the merger with Bogota’s exchange. A letter of intent was signed in January, with shareholder approval expected by the end of this month.