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Year-End 2013 Report
| Regional Trends
Latin America
Capital Raisings
Seven issuers raised approximately $1.5 billion in DR form
of which approximately $1.3 billion (or 85%) was in IPO form.
Colombia was the most active in IPOs, raising over $534
million, followed by Peru and Mexico, raising $413 million
and $346 million, respectively. The largest initial public
offering out of the region was Grana y Montero S.A.A. from
Peru, raising approximately $413 million on the New York
Stock Exchange (NYSE).
Approximately $230 million was raised by three issuers in
follow-on offerings, accounting for 15% of all capital raisings
from the region. Chile was most active in follow-on offerings
raising $193 million. The largest follow-on offering was by
Cia Cervecerias Unidas SA from Chile, raising approximately
$111 million.
Trading Volumes
DR trading volumes decreased slightly by 1% (or 0.4 billion
DRs) with 38.8 billion DRs traded in 2013 versus 39.2 billion
DRs during prior year. Most of the decrease was due largely
to lower trading volumes of NYSE-listed programs (0.4 billion
DRs). In terms of countries, a drop in trading volumes for
programs from Brazil (1.5 billions DRs) was offset by increases
in trading volumes for programs from Mexico (0.8 billion DRs)
and Peru (0.2 billion DRs).
New Programs
1,2
Eleven new programs were announced from Latin America:
three U.S.-listed ADRs (all listed on NYSE Euronext), six Level
1 ADRs and two GDRs (including bifurcated programs). Brazil
was the most active region with four new programs (all Level
1 ADRs).
Grana y Montero S.A.A. from Peru (NYSE) was the most
notable IPO transaction from the region.
Market Performance
Citi Depositary Receipt Services maintains the Latam DR
indices (CLDRLAT) to gauge investor sentiment toward Latam.
During 2013, CLDRLAT dropped by 15%, underperforming
the S&P 500 Index. On a long-term basis, since 2001,
CLDRLAT has been one of the best-performing CLDR Index,
appreciating by 213%, outperforming both the S&P 500 and
the Citi World ex-U.S. by a substantial margin.
In December 2013, the Brazilian Government by Presidential
Decree removed the IOF tax on ADR issuance. We are hopeful
that this will boost ADR issuance in the future.
1
For bifurcated programs, Reg S and 144A tranches have been counted as
separate programs.
2
Program count as of December 2013.