Brazil IPO market sees selective reopening in first half

The Brazilian IPO market is seeing a selective reopening, with initial offerings in the first half of the year surpassing the total for 2025. However, investors remain highly demanding, focusing on resilient assets with predictable returns. For example, Compass shares fell 11.85% from their IPO price of R$ 28 to R$ 22.83 by early August, outperforming the Ibovespa's 6% decline during the same period.

Market experts suggest that a full recovery of initial public offerings may be delayed by political volatility. Analysts note that election years typically increase exchange rate volatility and risk premiums, often deterring companies from going public. The expected trend for market reopening involves follow-on offerings first, followed by defensive IPOs, and finally growth-oriented IPOs once interest rates decrease.