Of the 72 companies that debuted on the Brazilian B3 stock exchange in 2020 and 2021, more than three-quarters have seen their share prices decline since, according to figures compiled by analyst Einar Rivero. No IPOs took place in Brazil in either 2022 or 2023.
Among the biggest declines were e-commerce solutions provider Infracommerce (97.8% loss in share value), logistics operator Sequoia (97.6%), and wind energy blade manufacturer Aeris (95.2%). In contrast, wholesale food chain Assaí has seen its share prices rise 287.8% in value since its IPO, construction and real estate company Cury rose 164.3%, and insurance company Caixa Seguridade rose 86.5%, marking the top gains on B3.
The shift in the macroeconomic environment partially explains these trends and the lack of recent Brazilian IPOs as a whole.
During the height of the Covid pandemic, a sharp drop in interest rates by the Central Bank injected liquidity into the market, preventing an economic halt. However, in subsequent years, rising inflation forced the...
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