Why have Brazil’s 2021 IPOs bombed?

Mid-year optimism has faded as over-hyped start-ups struggle amid tough macroeconomic conditions

Why have Brazil's 2021 IPOs bombed?
Illustration: MJgraphics/Shutterstock

Over the past couple of years, a flurry of IPOs in Brazil has become synonymous with the success and resilience of Brazil’s capital market in the face of recession and the pandemic. Yet, while 2021 is still poised to be a record year, the first cracks are starting to appear. Early data shows that the performance of IPOs is well below expectations, despite the amounts raised by newcomers.

A study by investment analysts Nord Research shows that, by late September, 58.7 percent of the companies who joined the B3 stock exchange in 2021 saw negative returns, while only 14 out...

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