Friday the 13th proved to be a lucky day for the Brazilian stock market. The IPO of OGX Petróleo e Gás Participações SA became a historic event: it was the largest IPO in the history of the Brazilian market, reaching BRL5,872,686,983.00, and possibly attaining BRL6,711,662,763.00 with the transaction of additional shares to cover over-allotments, thus surpassing the previous IPO record held by Bovespa Holding. OGX also became the 100th company listed on the Novo Mercado segment and was the first IPO registered at BM&FBOVESPA after the merger of both exchanges. "OGX shares are listed at the world’s third largest exchange by market value. We are very proud to have now 100 companies listed under the most rigid practices of corporate governance. This proves the success of the different governance levels," emphasized Gilberto Mifano, BM&FBOVESPA’s chairman, during the OGX IPO ceremony.
After the subprime mortgage crisis in the U.S., which represented a backtrack in foreign interest in Brazilian IPOs, Friday’s event demonstrates a rekindle of the capital markets in Brazil. This is the opinion of the Exchange’s ceo, Edemir Pinto, who was also present at the OGX IPO ceremony. "Brazilian companies are healthy. We have currently 100 companies listed on the Novo Mercado segment and this shows the importance self-regulation has reached in Brazil, not only at the CVM (Brazil’s Securities and Exchange Commission) level, but also at the BM&FBOVESPA level with the Novo Mercado segment. This gives us more power to halt Brazilian IPO’s in overseas exchanges, and to compete for foreign IPOs."
Eike Batista, chairman of EBX Group, classified the regulatory activities of the Brazilian market, carried out by both the Exchange and by CVM, as "spectacular": "The Exchange and CVM have created this impressive apparatus, with clear regulations and transparency. This is what the foreign investor wants: Transparency, competence and ethics," stated fBatista. He also praised Brazil’s President, Luiz Inácio Lula da Silva: "President Lula has done the most important thing in order to turn foreign investors’ attention to Brazil: the respect for established rules. With these transparent rules, I feel I am on a race-track, on a spectacular arena," fBatista pointed out.
For Gilbert Mifano, "It’s important that other entrepreneurs perceive the Novo Mercado segment as a tool to expand their businesses and pave the way for sustained development in Brazi
Common shares of OGX are traded under the ticker symbol OGXP3. The other companies of the EBX Group – MMX and MPX – are also listed on the Novo Mercado segment. With the OGX IPO, there are currently 163 companies listed on the Exchange’s special segments: 100 on the Novo Mercado; 19 on Nível 2; and 44 on Nível 1. The company has also been included in the portfolio of the Special Corporate Governance Stock Index (IGC).
