Brazilian companies had planned $6 billion in equity sales following an expected victory by conservative Flávio Bolsonaro. Now, after Luiz Inácio Lula da Silva’s stunning upset, those plans are in disarray. Brazilian stocks fell the most in 30 years, and the real dropped the most in two decades.
Investment bankers had estimated follow-on stock offerings could raise 30 billion reais over six months under Bolsonaro, betting on a friendlier business climate. Several firms, including Equatorial SA, Ecorodovias Infraestrutura e Logistica SA, and Compass Gas e Energia SA, were preparing offerings. Now, bankers expect no sales before mid-2027.
IPO plans for Banco Votorantim SA and Aegea Saneamento e Participações SA are also delayed. Lula’s win has triggered a reassessment of stocks, interest rates, and growth. Mergers, including Azzas 2154 SA’s talks to sell Farm Rio, are being reconsidered.
Executives are watching Lula’s economic team closely, hoping for centrist appointments despite fiscal concerns.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing