Brazil is ending its biggest year for initial public offerings since 1986, and more companies are lining up to go public next year as a rising stock market and a growing economy encourage investment.
Seven companies completed initial share sales, led by Gol Linhas Aereas Inteligentes SA, a discount airline whose June sale accounted for a fifth of the 4.55 billion reais ($1.68 billion) raised this year. The IPOs were the first in Brazil since February 2002.
Power utility EDP Brasil, apple producer Renar Macas SA and software company RM Sistemas all plan IPOs during 2005 in Latin America's biggest stock market, according to filings with the country's stock-market regulator and company statements.
``No doubt we will see more IPOs next year,'' said Nelson Rocha Augusto, 41, president of Rio de Janeiro-based BB DTVM, Latin America's largest asset manager, in an interview. ``Investors' interest in holding stocks in their portfolios is growing significantly.'' Augusto's firm oversees $44.8 billion.
The Sao Paulo bourse, the region's largest with a market value of $330 billion, attracted more new listings this year than any other in Latin America. Only four other IPOs took place in the region -- two in Mexico and two in Chile.
bloomberg.com.
Brazil's Bovespa stock index is up some 15% this year, powered by companies such as Companhia Vale do Rio Doce, a major exporter of iron ore, and CSN, a major steelmaker. Rio Doce, CSN, and other basic industry companies should continue to do well considering the world's voracious appetite for raw materials, especially in China.
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