Reports that Latin American payment processor PagSeguro Internet is considering an IPO in New York in the first quarter of 2018 shines a fresh light on the relative lack of liquidity for tech listings within the Latin America region.
A report by Reuters in early December quoted two company sources at PagSeguro as saying they had mandated Goldman Sachs to lead an IPO on the New York Stock Exchange (NYSE) or Nasdaq.
The listing would be the first of a growing wave of Brazilian fintechs that are eyeing access to public capital.
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Dan Green, |
Dan Green, partner at Gunderson Dettmer, a Silicon Valley law firm that worked on Despegar’s recent $332 million issuance on the NYSE in September, says local stock exchanges can’t offer the liquidity available in New York.
“These tech listings will continue to be driven by liquidity and pricing, and both the Nasdaq and the New York Stock Exchange have significantly more liquidity than any of the Latin American exchanges – even the Bovespa,” says Green.
“When we are talking to companies or investors about IPOs, the conversation is almost US-centric, even if there could be a secondary-list element for local marketing purposes.”
