The Mexican Stock Exchange (BMV) has promoted for years that more companies go to the market to finance themselves. However, despite their efforts, the number of listed companies has even been reduced, reports Expansión. In the last 20 years, the number of companies listed in the capital market of the BMV went from 195 to 145, a decrease of 26%.
"There are several factors for the exit of companies. Several have left because they have been sold, others have not done very well and had financial problems and went bankrupt, and in other cases the majority shareholders decided to buy back those shares, because they consider that it is not necessary to continue on the stock market, because they have the capital they need, "explains Gerardo Copca, director of Analysis in Meta-analysis.
In the latter case is Rassini, who recently announced that he will be delisted from the market. Other companies that left for a similar reason were Telmex, which in 2012 was delisted by América Móvil, to achieve efficiencies in the integration of financial reports and administrative costs, and La Moderna, which in 2010 considered that it was no longer attractive to quote.
Among the companies that left the Stock Exchange after an acquisition, are Grupo Modelo, which was purchased by AB InBev in 2013; Grupo Azucarero Mexicano, which merged its sugar business with Grupo Embotelladoras Unidas (Geupec) in May 2011; and Unefón, which merged with Iusacell in 2007, and later both companies were acquired by AT & T in 2014. And among those that went bankrupt are Hilasal textile company, Mexicana de Aviación airline, and Casa Saba.
In Mexico, there are more than 4 million companies, but only 0.2% (7,200 firms) are considered large, according to Inegi data. Of these companies, only 2% are in the stock market, and most of them prefer not to go to the market, either because they do not need the capital or because "they probably do not like having all their information open," says Copca.
Coppel, Cinepolis, VivaAerobus, Interjet, SuKarne, and Casa Ley are some of the large Mexican companies that have not issued shares. According to José-Oriol Bosch, CEO of BMV, the demand for greater transparency and to have corporate governance are the biggest barriers for companies to decide to stop being familiar and go public. Another problem is the lack of knowledge of the benefits offered by the market, says Bosch, who insists that the stock market is not only for large companies.
This coincides with Maria Ariza, general director of BIVA, the second stock exchange in Mexico, which began operations in 2018. In the event of the company's start of operations, Ariza said that BIVA seeks to boost financial culture and democratize the market, by receiving to companies of all types and sizes. To encourage more companies to go public, the government announced a fiscal stimulus, which consists of reducing the payment of ISR in the Initial Public Offers from 30% to 10%. Analysts applaud the program, but warn that it will not be enough to grow the country's market.