45 Brazilian Companies Plan IPOs Regardless Of Economic Uncertainty

Brazilian companies have 45 initial public offering (IPO) plans awaiting regulators’ approval, Reuters reported, in what the news service stated is an indication potential government economic intervention has yet to cool the sector.

According to Reuters, Brazil’s IPO pipeline grew by five companies in the past week with filings by Rio Alto Energias Renováveis, Rio Energy Participacoes, Avenida, Infracommerce and Bionexo.

Reuters reported that investors fear Brazil’s president, Jair Bolsonaro, is poised to involve the government more in the operation of state-owned companies. According to the wire service, the Brazilian real is down almost 30 percent against the U.S. dollar in 2021 and Bovespa, a stock exchange benchmark index, is down 3 percent for the year.

Reuters stated that a recent increase in COVID-19 infections in parts of Brazil has heightened investors’ worries.

The strong IPO market in Brazil coincides with an extremely hot U.S. IPO market this year and last, with activity involving special purpose acquisition companies (SPACs) driving a significant part of the action.

A number of the recent U.S. IPOs have occurred in the FinTech and payment sectors.

Rio Alto Energias Renovaveis was founded in 2009 and focuses on renewable energy generation. According to the company’s website, the firm oversees project from beginning to end. The company stated that the vertical integration reduces risks and maximizes returns.

Rio Energy Participacoes also focuses on renewable energy generation products, according to the company’s website, which lists social objectives alongside business objectives. The firm stated on its website that its primary investor is Denham Capital, which has offices in Houston, Texas; London; Boston, Massachusetts; and Perth, Australia.

Avenida is a fashion retailer, and Infracommerce operates an eCommerce platform, Reuters reported

Bionexo, according to its website, makes a platform for healthcare process management.