Another Hot Year Brewing for Brazilian IPOs After 2020 Blowout

(Bloomberg) -- After the biggest year in more than a decade for Brazil’s initial public offerings, the list of companies lining up to go public suggests 2021 could be even busier.

Bank of America Corp. has flagged the crowded pipeline, which includes retailers, builders, a cemetery operator and the country’s largest laser hair-removal firm. This year, companies and bankers rushed deals to the market at the fastest pace since 2007, raising 43 billion reais ($8.4 billion) as record-low domestic interest rates prompted investors to seek juicer returns in stocks.

Forecasts from investment banks and data from regulatory filings signal that the number of equity debuts may rise next year, while the total amount of funds raised in all equity offerings might be in line with 2020. Some of the most-awaited transactions include the IPO of steelmaker Cia. Siderurgica Nacional SA’s mining unit, which analysts say may be worth 30 billion reais, and furniture firm Tok&Stok, which is controlled by private equity firm Carlyle Group Inc.

For investors in this year’s IPOs, the deluge has been a mixed bag.

Half of the 28 Brazilian firms that debuted this year through Dec. 16 are trading below their IPO price, according to data compiled by Bloomberg. Brazilian IPOs, most of which were issued after the Covid-induced selloff in March, returned 17% this year, trouncing the 2.6% gain for the Ibovespa but trailing a 37% gain for U.S. equity debuts, the data show.

Deals were “aggressively priced” in Brazil this year, according to Will Pruett, a fund manager who oversees about $6.4 billion at Fidelity. The hedge-fund industry is luring new money at a record pace, providing a robust pipeline of demand for IPOs.

“There’s a fierce fight for the deals,” Luis Stuhlberger, a founding partner at Verde Asset Management, said in a webcast last month.

Here’s the list of some potential IPOs:

Acu Petroleo

Brazil’s largest private oil terminal Acu Petroleo filed for a primary and secondary IPO. Bank of America is leading the transaction.

BBM Logistica

Logistics company BBM Logistica filed for a primary and secondary IPO. BTG Pactual is leading the transaction.

Bemobi

Mobile media and entertainment firm Bemobi filed for a primary and secondary IPO. The company is focused on distributing and monetizing apps, games and mobile digital services. BTG Pactual is leading the transaction.

Boa Safra

The Formosa, Goias-based seed producer Boa Safra filed for a primary IPO. XP is leading the transaction.

BV

Lender BV filed for a primary and secondary offering of units -- which are a bundle of voting and non-voting shares. Goldman Sachs is leading the transaction.

Caixa Seguridade

State-controlled lender Caixa Economica Federal suspended the IPO of its insurance unit Caixa Seguridade twice, but the bank’s CEO recently said there might be a window of opportunity for the insurer to go public in early 2021.

Canopus

Builder Canopus, which was founded by Adgar Mattos in 1971, filed for a primary and secondary IPO. Itau BBA is leading the transaction.

CFL

Real estate developer CFL filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Compass

Compass, a subsidiary of Brazil’s infrastructure and energy conglomerate Cosan, canceled its IPO in September, citing deteriorated market conditions. But the company is expected to resume its listing plans, according to local newspaper Valor Economico.

Cortel

A death-care services provider for both pets and humans, Cortel filed for a primary and secondary IPO. The company owns 10 cemeteries across Brazil. XP is leading the transaction.

Cruzeiro do Sul

Education firm Cruzeiro do Sul filed for a primary and secondary IPO. BTG Pactual is leading the transaction.

CSN Mineracao

Steelmaker CSN’s iron ore unit, known as CSN Mineracao, filed for a primary and secondary IPO. Morgan Stanley is leading the transaction.

CTC

Sugar cane technology firm CTC filed for a primary and secondary IPO. Morgan Stanley is leading the transaction.

Eletromidia

Eletromidia, which focuses on billboards, digital panels and other forms of outside-the-home advertising, filed for a primary and secondary IPO. Morgan Stanley is leading the transaction.

Eleva

Brazil’s K-12 school chain Eleva Educacao SA, in which billionaire Jorge Paulo Lemann owns a stake, was planning an IPO in the U.S. or Brazil, people familiar said earlier this year.

Emccamp

Homebuilder Emccamp filed for a primary and secondary IPO. XP is leading the transaction.

Focus Energia

Power company Focus Energia filed for a primary and secondary IPO. Morgan Stanley is leading the transaction.

GranBio

Biotech firm GranBio filed for a primary initial public offering. Citi is leading the transaction.

Grupo Big

Food retailer Grupo Big, which operates a network of stores previously controlled by Walmart, filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Grupo MPR

Producer of alcohol-based cleaning products Grupo MPR filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Guararapes Paineis

Wood products maker Guararapes Paineis filed for a primary and secondary IPO. The firm has three factories in Santa Catarina and Paraná states. BofA is leading the transaction.

Havan

The Brazilian retailer was planning on going public, but withdrew its IPO request in October amid market volatility. Local media has reported that the firm will likely resume its listing plans in 2021.

Igua

Sanitation firm Igua Saneamento filed for a primary and secondary IPO. Bradesco BBI is leading the transaction.

Intelbras

A producer of cameras and other security equipment, Intelbras filed for a primary and secondary IPO. BTG Pactual is leading the transaction.

Jalles Machado

Sugar and ethanol producer Jalles Machado filed for a primary and secondary IPO. XP is leading the transaction.

Kallas

Real estate developer and builder Kallas filed for a primary and secondary IPO. Credit Suisse is leading the transaction.

Kalunga

School and office supplies firm Kalunga filed for a primary and secondary IPO. BTG Pactual is leading the transaction.

Metodo

Construction firm Metodo filed for a primary and secondary IPO. XP is leading the transaction.

Mobly

Home 24 SE’s Brazilian unit Mobly filed for a primary and secondary IPO. Morgan Stanley is leading the transaction and use of proceeds would be to accelerate growth in Latin America.

Mosaico

Digital platform Mosaico, which owns price comparison websites Buscape and Bondfaro, filed for a primary and secondary IPO. BTG Pactual is leading the transaction.

MPM

Brazil’s largest laser hair removal company MPM, or Espacolaser, filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Nissei

Drugstore chain Nissei filed for a primary and secondary IPO. It has a strong footprint in Parana state. Safra is leading the transaction.

Oba Hortifruti

Food retailer Oba Hortifruti filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Oceana

Rio de Janeiro-based firm Oceana Offshore filed for a primary and secondary IPO. BTG Pactual is leading the transaction.

OceanPact

A provider of maritime services, OceanPact filed for a primary and secondary offering. Itau BBA is leading the transaction.

Oleoplan

Renewable energy firm Oleoplan filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Orizon

Waste treatment firm Orizon filed for a primary and secondary IPO. Credit Suisse is leading the transaction.

Paschoalotto

Debt collector Paschoalotto filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Tok&Stok

Carlyle-controlled furniture company Tok&Stok filed for a primary and secondary IPO. Itau BBA is leading the transaction.

Uni.co

Retailer Uni.co, owner of brands Puket and Imaginarium, filed for a primary and secondary IPO. XP is leading the transaction. The firm is backed by local fund Squadra Investimentos.

Urba

Homebuilder MRV’s unit Urba filed for a primary IPO. BTG Pactual is leading the transaction.

Vittia

Fertilizer company Vittia filed for a primary and secondary IPO. Morgan Stanley is leading the transaction.

Westwing

Online furniture and home decor retailer Westwing filed for a primary and secondary IPO. BTG Pactual is leading the transaction. The firm was part of German retailer Westwing Group AG -- which is publicly traded -- but became independent in 2018 through a management buyout.

Yuny

Real estate developer Yuny filed for a primary and secondary IPO. BTG Pactual is leading the transaction.

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