Unlike the IPOs and follow-ons that took place in 2021, capital markets activities have slowed down in 2022, with only 18 follow-ons totaling BRL +55 bn (+USD 11 bn). There were no IPOs in Brazil in the period.
M&A activity in Brazil in 2022 reached a volume of 1,543* transactions (based on Kroll market research), representing a 5.2% decrease compared to the same period in 2021. The sectors with the highest representation are technology, financial institutions and energy. The decrease is due to conservatism, also, cash preservation returned to the main agenda of investors, in a context of greater investments selection with the basic interest rate in Brazil of 13.75% — and without a reduction bias in the medium term.
As IPOs (0) and follow-ons (17) have decreased offers in 2022, M&A activity has taken advantage of this scenario and should remain strong, but with significant challenges from the political scenario.