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Santander expects $ 30 billion in stock offering

(Bloomberg) – At least 30 initial public offering stocks are expected to increase to about $ 15 billion over the next 18 months in Brazil, and a further $ 15 billion increase is expected, says Banco Santander Brazil.

"2019 will be a very active year," André Brazil, chief executive officer of André Rosenblit, said. "In 2018, the stock exchanges heavily dampened the election process." Basically, there have been very few jobs and those that happened, occurred outside the country, "Rosenblit said in an interview with Sao Paulo Bank's office.

Changing the prospects for stock supply in the largest economy in Latin America followed the expectations of investors that President Jaira Bolsonar's management would adopt the agenda in order to privatize inefficient state-owned companies and promote fiscal measures to address the growing public debt of the country, in particular the pension system reform.

Santander expects the company to concentrate in the first half of next year, where it could be about 10 IPOs.

"Historically, in the first six months, the government has greater flexibility, greater negotiation. The market is moving towards more business in the first quarter of 2018," Rosenblit said.

Stocks of Brazilian companies in the accumulated year of this year fell by 17.6 percent to $ 31.5 billion. The most successful IPOs of the year, from PagSeguro Digital and StoneCo Ltd, were made in the United States.

According to Rosenblit, the share of local investors in transactions is typically somewhat higher than in the past, as the local industry is growing, and some stock funds this year brought a lot of money in the midst of increased risk appetite, "We expect a good demand from local investors," he said.

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