Citi Predicts Brazil’s Four-Year IPO Drought Will End in 2026

Brazil’s four-year drought for initial public offerings may be close to an end, according to Citigroup Inc., which see secondary sales rebounding in 2026 as well.

Capital has started flowing back into emerging markets such as Brazil and Mexico, and that will help fuel the equity capital markets next year, according toNicolas Roca, Citi’s head of Latin America investment banking. Brazil hasn’t seen an IPO since fertilizer producer Vittia Fertilizantes e Biologicos SA went public in September 2021.

“You’ve seen valuations recover a little bit in the equity capital markets, although there’s still a lot of room ...