Global Capital Markets


Contributed by Bruno von Dreifus, associate from Trench Rossi Watanabe*

As the Brazilian economy continues to be affected by political uncertainties, securities market players and the Brazilian capital markets regulator (Comissão de Valores Mobiliários or CVM) have seized the opportunity to promote the growth of corporate governance practices in the Brazilian securities market.

As part of this wave, the main securities market associations in Brazil formed a working group with the participation of the CVM and the Brazilian Bank for Economic Development (BNDES) as observers and on 16 November 2016, published the Brazilian Corporate Governance Code (Código Brasileiro de Governança Corporativa – Companhias Abertas—the “Code”). The Code promotes various recommendations to listed companies, including composition and periodic reviews of the management, independence in the running of the business, protection of minority investors and ethics and compliance.

The first half of 2017 has seen a rebound in overall IPO activity, compared to the same period last year. Baker McKenzie’s Cross-Border IPO Index shows that the value of issuance globally rose to USD 89 billion and the number of deals to 728 (an increase of 76% and 53%, respectively, from H1 2016).

However, deal making has not reached the same levels as in 2015, as total capital raised in H1 2017 was 24% lower. Still, there is a sense that companies the world over are getting on with business despite recent political developments.

Baker McKenzie’s analysis of 2016 healthcare IPOs shows a record year for biotech led to a 2% increase in capital raised from healthcare IPOs in 2016 despite a 39% decline in the volume of listings. Biotech deals, which include healthtech listings, continue to dominate the sector in terms of value, accounting for 45% of total capital raised with USD 8.16 billion from 27 deals. “While healthcare IPOs volume slowed in 2016, the sector outperformed in…

Baker McKenzie’s full-year 2016 Cross-Border IPO Index rose by 16% to 32.3 from 2015’s score of 27.9. Cross-border IPOs grew their share of listings, even as overall volume declined. On value, the average capital raised by a cross-border IPO was USD276 million, compared to USD160 million for a domestic listing. The overall lower IPO activity can be attributed to global uncertainty and volatility.  “The story of 2016 is geopolitical instability, particularly as the world waited…