Compass Gas e Energia SA's shareholders raised 3.2 billion reais ($650 million) in Brazil's first initial public offering in almost five years, according to people familiar with the matter. The deal marks a significant milestone for Latin America's largest economy, which has seen virtually no new stock market listings since 2019.

The IPO represents a potential turning point for Brazilian capital markets that have been largely dormant. The last major IPO wave in Brazil occurred before the pandemic, when a series of corruption scandals and economic headwinds deterred companies from going public. Compass's successful listing could signal renewed investor appetite for Brazilian equities.

The deal's size — $650 million — positions it as one of the larger emerging market IPOs this year. For investors, the offering tests whether international capital remains willing to back Brazilian growth stories despite ongoing fiscal concerns. The outcome will likely influence whether other Brazilian companies accelerate their own public market plans.