the brazilian capital market: recent€¦ · aliansce, br propert, mills, hrt, raia r$5,39 bilhões...
TRANSCRIPT
Cristiana Pereira
Feb-9-12
The Brazilian Capital Market: recent developments and trends
The Brazilian exchange has become one of the top capital raising markets…
Souce: BM&FBOVESPA.
17,8
IPO: 7 Follow on: 8
IPO: 9 Follow on: 10
IPO: 26 Follow on: 16
IPO: 64 Follow on: 12
IPO: 4 Follow on: 8
IPO: 6 Follow on: 18
IPO: 11 Follow on: 11
IPO: 11 Follow on: 11
Capital raised by share issues (BRL billion)
2010 – Petrobrás – biggest public offering in the world: in Brazil
4 , 3 8 , 5 15 , 1 14 , 5
26 , 8
22 , 2
63 , 2
10 , 7 4 , 5 5 , 4
15 , 4
55 , 6
7 , 5 23 , 7
11 , 2
7 , 1
2004 2005 2006 2007 2008 2009 2010 2011
Follow - On IPO Parcel related to the onerous cession - Petrobras offer
30 , 4
70 , 1
8 , 8 13 , 9
34 , 3
45 , 9
149 , 2
30 , 4
70 , 1
8 , 8 13 , 9
34 , 3
45 , 9
149 , 2
30 , 4
70 , 1
8 , 8 13 , 9
34 , 3
45 , 9
149 , 2
30 , 4
70 , 1
8 , 8 13 , 9
34 , 3
45 , 9
149 , 2
74 , 81
• Goal: reduce the distance between the regulation and the necessity to
protect investors
• Main requirements of Novo Mercado:
• Requirements of Corporate Governance: shareholders rights, transparency
and supply of mandatory information
• Adhesion to Market Arbitration Chamber to solve corporate conflicts
• Requirement to listing maintenance
... built with a creation of special Corporate Governance segments
• Novo Mercado is a private initiative, based
on the self-regulation power of the
Exchange, in order to improve the quality of
public companies and the credibility of
capital market
• It creates a receptive environment for
public offerings
IPOs by Listing Segment*
Novo Mercado
75%
Nível 213%
Nível 1
6%
BDR6%
*Data from 2004 to July-07-2011.
Corporate Governance Index compared to IBOVESPA
(Base 1.000 - desde 25/06/2001) – fonte: BM&FBOVESPA
Índices IGC IBOV
Jun/2011 -2,32% -3,43%
Em 2011 -7,08% -9,96%
Desde 2001 +608,90% 329,77%
-
1.000
2.000
3.000
4.000
5.000
6.000
7.000
8.000
9.000
IGC
Ibovespa
•TelecomSector Index – ITEL
• Electric Power Index – IEE
• I ndustrial Sector Index – INDX
• Consumption Index – ICON
• Real Estate Index – IMOB
• Financial Index – IFNC
Broader range of sectors
% of the market capitalization – January/12
Sector Indexes
New sectors (since 2004): car rental, information technology, toll roads and highways,
pharmaceutical products, agriculture, sugar and alcohol, residential building construction, property
agency, education services, medical services and stock exchange
Financial
26,4%
Oil, Gas and Biofuels16,5%
Consumer Non Cyclical15,1%
Basic Materials15,0%
Public Utilities9,9%
Telecommunications6,3%
Construction and Transportation
4,7%
Consumer Cyclical4,1%
Capital Goods1,7% Information of
Technology0,4%
Growing Private Equity Industry in Brazil
0,1 0,5
1,3
2,9 2 2,3
7,2 32
23
31 33
15
29
68
0
10
20
30
40
50
60
70
80
0
1
2
3
4
5
6
7
8
2004 2005 2006 2007 2008 2009 2010
Volume (US$ Bilhões) Quantidade de Negócios
Submarino,
Localiza,
Tam, Uol
R$1,91 Bilhões
Gol, Dasa, ALL
R$1,90 Bilhões
Vivax, Gafisa,
Equatorial,CSU,
Brasilagro,
Lupatech, Abyara,
Odontoprev,
Dufrybras
R$4,90 Bilhões
PDG, GVT,
Anhanguera, Even,
Br Malls, Fer Heringer,
Metalfrio, Bematech,
Cremer, MRV,
Springs, Providencia,
Multiplan, Satipel,
Laep, Tempo Part
R$9,69 Bilhões Le Lis Blanc
R$0,15 Bilhões
Tivit, Cetip,
Direcional
R$1,62 Bilhões
Aliansce, BR Propert,
Mills, HRT, Raia
R$5,39 Bilhões
Source: Veja and Advent International Notes: 2010: excluding investments out of Brazil (Burger King negotiation) 2007: excluding US$ 2,4 billions from investments on real estate sector and not private equity Negotiations without released value were not considered at volume, but were counted in the number of trades
Vo
lum
e (U
S$ B
illio
ns)
Nu
mb
er o
f tr
ades
Number of trades Volum (US$ Billion)
But we still have a lot of things to be accomplished...
Fonte: World Federation of Exchange (WFE).
Ranking WFE
23º
Number of listed companies in Stock Markets – 2011
466
476
545
593
746
773
773
777
824
931
940
1 112
1 229
1 411
1 496
1 640
2 079
2 220
2 291
2 680
2 886
3 276
3 945
0 1 000 2 000 3 000 4 000 5 000
BM&FBOVESPA
Mexican Exchange
The SE of Thailand
Tel Aviv SE
Deutsche Börse
Singapore Exchange
NASDAQ OMX Nordic Ex
Warsaw SE
Taiwan SE Corp.
Shanghai SE
Bursa Malaysia
NYSE Euronext (Europe)
Osaka SE
Shenzhen SE
Hong Kong Exchanges
National SE India
Australian SE
NYSE Euronext (US)
Tokyo SE Group
NASDAQ OMX
London SE Group
BME Spanish Exchanges
TMX Group
Opportunities in the Brazilian Capital Market...
Number of companies by size
Segment have been developed with a
EDUCATIONAL presence.
3 thousand
From 15 thousand to 20 thousand
More than 3 million
More than 1,000 employees
Annual sales over BRL 400 million
250–1,000 employees
Annual sales between BRL 20m-400m
Up to 250 employees
Annual sales below BRL 20 million
BM&FBOVESPA initiatives with partners promoting lectures on IPOs
in those some Brazilians cities
Salvador – BA
Curitiba – PR
São Paulo – SP
Alternative for a great number of companies, for
all sizes and with gradual strategy in regard to
access to the capital markets
+
Characteristics of companies seeking
gradual access to the market
=
BM&FBOVESPA works to provide access to SME Companies...
BM&FBOVESPA’s Strategy Reach out to companies in all maturity levels
BM&FBOVESPA’s Strategy – examples Highlight small and medium companies
Ranking 2011 2.000 companies with annual revenues between R$ 18 million and R$ 300 million in 2010
Ranking 2010 1.000 companies with annual revenue between R$ 62,3 million and R$ 230 million in 2009.
BM&FBOVESPA’s Strategy – examples Connecting Companies to Investors – Pre-IPO Stage
FINEP* Agreement with BM&FBOVESPA
Meetings among investors and companies that could possibly make an IPO or receive VC / PE investments
Scope of the event: coaching of hired consultant in structuring
the business plan of non listed companies. Executives from those
companies will be trained to make presentation to institutional
investors, banks, brokers and managers of venture capital
Realized in November 8th 2011 with participation of 4 companies
Presence: 55 people
– 18 representing investors
– 29 representing banks and brokers
– 7 others representing (non listed companies and audit firms)
* Research and Project Financing, also known as the Brazilian Innovation Agency, is a publicly owned company subordinated to the Ministry of Science and Technology – MCT
Cristiana Pereira
Fev-9-12
The Brazilian Capital Market: recent developments and trends in Brazil Capital Market