2023 Q2Equity House of the Year

Deals of the YEar awardsEquity House of the Year:
Morgan StanleyIntro DividerIn a year in which equity deals all but dried up in Latin America, Morgan Stanley managed to play a leading role in the two most noteworthy transactions to hit the market.The firm, which wins the award for Equity House of the Year, was the lead-left bookrunner for Nubank’s landmark $2.6 billion IPO in December 2021 – a deal that was not only the largest IPO of the period, but also highly innovative.Marcello Lo Re, head of Capital Markets at Morgan Stanley in São Paulo, says the offering was “very complex” as a result of its multiple parts. Nubank listed its shares on the New York Stock Exchange at the same time it issued BDRs on São Paulo’s B3, among other innovations. The deal won the award for IPO of the Year.Morgan Stanley was also a bookrunner for Eletrobras’ R$34bn follow-on offer in June 2022, which in practice meant the privatization of the Brazilian power utility firm in a long-delayed and politically delicate transaction. That transaction won the award for Equity Follow-On of the Year. “The Eletrobras board took hundreds of meetings with the market, which is unusual for a follow-on deal. They did a superb job of it,” says Lo Re. The argument in Morgan Stanley’s favor is also backed by league tables which put the Wall Street bank at the top of the Latin American equity rankings, with a 16.2% share of the market during the awards period, according to Dealogic. Its performance is significant especially considering the low volume of equity deals over that period. Only Brazil’s B3 registered significant listings, and the very few deals on offer mostly lacked the participation of global investors.“Most of the IPOs and follow-on deals that took place since the last quarter of 2021 had a majority domestic investors,” says Alessandro Zema, Brazil country head and co-head of Investment Banking in Latin America at Morgan Stanley.Looking forward, the executives expect the equity market to remain on hold until there is more clarity about the direction of US monetary policy. “The second half of the year should definitely be better,” Lo Re says. “Companies are already discussing the convenience of start working to be prepared for the second half of 2023 or in 2024.” LF
Dividing RuleCoverMastheadLetterTable of ContentsDatabankMarket Talk: BondsMarket Talk: EquityMarket Talk: M&AMarket Talk: LoansCover Story: LatAm Capital MarketsScotiabankCover Story: Local Currency BondsBrazil: Economic PolicyBrazil: Interview: Gustavo LoyolaBrazil: Local Bond MarketsBrazil: Capital Market RegulationNearshoring in MexicoPeru's EconomyWinners: 2022 Deals of the Year AwardsSovereign Issuer of the YearCorporate Issuer of the YearSustainable Borrower of the YearSovereign Bond of the YearQuasi-Sovereign Bond of the YearCorporate High-Grade Bond of the YearCorporate High-Yield Bond of the YearSubnational Deal of the YearSovereign Liability Management of the YearQuasi-Sovereign Liability Management of the YearCorporate Liability Management of the YearIPO of the YearEquity Follow-On of the YearPrivate Equity Deal of the YearSovereign ESG Deal of the YearCorporate ESG Deal of the YearCross Border M&A Deal of the YearDomestic M&A Deal of the YearSyndicated Loan of the YearFinancing Innovation of the YearSovereign Restructuring of the YearCorporate Restructuring of the YearFI Deal of the YearSovereign Local Currency Deal of the YearCorporate Local Currency Deal of the YearStructured Financing of the YearLaw Firm of the Year - Latin AmericaSustainable Finance Law Firm of the YearLaw Firm of the Year – MexicoLaw Firm of the Year – BrazilLaw Firm of the Year – AndesBond House of the YearM&A House of the YearEquity House of the YearLoan House of the YearInvestment Bank of the Year Latin AmericaParting Shot: Maisa Rojas