After the Initial Public Offering (IPO) of Globcash, a company in the pledge business, has been postponed twice, María Ariza, general director of the Institutional Stock Exchange (BIVA) acknowledged that there is a difficult situation in placements of the country’s capital market.
“We see issues this year, I think there will be more in the debt market. I would love to say that we are going to see stock IPOs this year. We have at least two offers that we continue to push hard, hopefully three, but it’s difficult, it’s a difficult time, “said the board.
In a conference on the occasion of the first placement of Factor Exprés stock certificates, for an amount of 150 million pesos with a term of 4.5 years, the general director of the stock exchange center trusted that the Globcash IPO will be held in July or August, next .
Regarding the issuance of four real estate investment trusts (fibras) whose IPO has also been postponed, María Ariza announced that the placement of one of them will be announced in the following weeks.
“We are going to continue to see volatility in the market (at least in the next two years), we are going to continue to have this uncertainty because this is global, we are going to continue to have these moments and for Mexico to the extent that we manage to iron out the issues regulatory, conjunctural and appetite, we will see more issues that are successful”, confided Ariza.
He stressed that the low valuations of Mexican issuers represent an investment opportunity, especially those that offer profitable business models, growth projects and solid fundamentals.
Debut in the debt market
Factor Exprés, a financial institution focused on granting loans and factoring to small and medium-sized enterprises (SMEs), debuted in the debt market, with an initial issue of 150 million pesos, from a 2,000 million-peso program, to a term of 4.5 years.
Enrique Presburger Cherem, executive president of Factor Exprés, highlighted during the conference on the occasion of the placement of debt, he commented that the financing received will be used to continue growing the credit portfolio for SMEs.
He assured that with the marketability they carried out they will seek to lower the cost of their credits. Currently, the rates they charge are, on average, between 18 to 24% per year. This year it estimates to close with a placement of 800 million pesos.
“On the side of SMEs we see a moment of opportunity and consolidation. The competitive small and medium-sized company is not the one that provides the best products or services, but rather the one that has the adequate financing to buy the raw material and to endure the payment terms”, he considered.