Most IPOs since 2004 still on stock exchange
At the moment, nearly 50 companies have filed for an IPO with the Securities and Exchange Commission of Brazil (CVM). Amid still low interest rates and investor migration from bonds to equity, the perspective is that there will be no shortage of demand on the Brazilian stock exchange B3. On the company side, a look at the past bodes well for those seeking the stock market as a way to foster business growth.
A survey carried out by Valor Data with 170 companies that went public between 2004 and 2019 shows that almost two thirds of them (107) remain listed and have leveled up after going public. Broader access to capital, the market's scrutiny and the use of shares as exchange currency have enabled the expansion of revenue for almost all these companies, which grew organically or through acquisitions.
According to Valor Data's analysis of each one, net revenues of the vast majority - 101 companies - grew in nominal terms considering the financial results between the year before the IPO and 2019. A slice of 44%, or 47 companies, posted average annual revenue growth between 10% and 20%. Twenty-two companies saw a yearly growth between 20% and 30%.
Executives of investment banks told Valor the figures signal a healthy market, in which the stock exchange has been enabling the growth of companies. Because of the very long period analyzed, ups and downs in share prices and in the timing of the offerings do not cause surprise.
Regarding the proportion of two thirds of the remaining companies in the market among those that went public in this 15-year period, it can be considered "healthy," even because it does not mean that all the companies that left the stock exchange failed. According to the survey, only 15 companies, or 9% of the total, disappeared - and four belonged to former billionaire Eike Batista's Grupo X. Among the remaining 48, most left the stock market due to mergers and acquisitions. Some were bought during weak periods, but most were absorbed by large businesses. And there were still companies that decided to go private and are still alive.
"When you identify this one-third of companies that are no longer in the market as an option for investors, it is necessary to understand why they left the market. If it was because the business didn't work out, this number could be seen as bad data. But if they left because of mergers and acquisitions, the signal is that the market has been fulfilling its role of fostering business and...
Para continuar a ler
PEÇA SUA AVALIAÇÃO