A record number of firms went public (IPO) in Latin America in 2021, with technology and software firms leading the pack.
Tech firms raised $4.4 billion in capital markets of the $18 billion IPOs generated during the entire year.
As many as 57 companies listed their share in stock markets, an increase of a staggering 75% compared to the previous year. Among those 16 are technology firms.
Brazilian fintech Nubank alone raised $2.5 in the stock market, as it expanded operations to several other countries in the region, including Mexico and Colombia.
Several LatAm fintech companies, which received a huge sum of foreign venture capital in the past three years, are likely to go public in 2022.
Of the 57 companies that listed shares in 2021, Brazil accounted for all but four, with Mexico and Uruguay seeing three and one respectively, according to Lexology. In terms of value, Brazilian companies raised US$16.6 billion of the total of US$18.7 billion raised in the capital market.
The IPO activity has slowed down drastically this year, with the Mexican economy showing all signs of slipping back into recession. High inflation and currency depreciation are most likely to persuade many firms to put off plans to go public, say analysts.