Latam IPOs 2025: trends, challenges and what to expect

Latin America’s IPO activity continues to face headwinds in 2025 as macroeconomic uncertainty and regional complexities persist. Despite high-potential companies across the region, the number of listings remains low, reflecting cautious investor sentiment and challenging conditions in major markets like Brazil and Mexico.

Regional IPO activity remains muted

In 2024, IPO performance across Latin America remained subdued, with only five companies listing on local exchanges and raising just US$28 million, a significant drop from US$366 million the previous year. This decline underscores a longer-term trend: the region has not recovered to pre-pandemic or 2021 levels, when 52 companies raised a record US$16.26 billion.

Although investor appetite has declined due to high interest rates, particularly in Brazil, and uncertainty around trade policies in Mexico, experts suggest that informed investors can still find valuable opportunities if they understand the region’s specific risks.

High-Quality companies still attract global attention

While local exchanges have seen limited activity, several standout companies have successfully turned to US markets. Peruvian healthcare group Auna raised US$360 million through a US IPO in 2024. Similarly, Mexican discount retailer BBB Foods listed on the NYSE, raising US$677 million, followed by a US$593 million follow-on in Q1 2025.

This momentum may continue with companies like Rappi, a dominant player in Latin America’s US$272 billion e-commerce market, reportedly considering a US IPO in 2025. These cases show that high-growth businesses in LatAm continue to attract foreign investors despite regional challenges.

Domestic exchanges show pockets of optimism

In Argentina, market-friendly reforms under President Javier Milei have begun to shift the IPO landscape. The country’s return to a budget surplus and five-year low inflation have supported new listings, such as Distribuidora de Gas del Centro, the first domestic IPO in over six years. Oil company Petrolera Aconcagua Energía is also seeking capital for expansion.

Privatization plans targeting over 50 state-owned enterprises, including Aerolíneas Argentinas and Energía Argentina S.A., may further boost IPO activity. However, the outcome of the October midterm elections will be key in determining policy continuity.

What to watch in Brazil and Mexico

Brazil, the region’s largest economy, has not recorded an IPO since 2021. While domestic politics have stabilized and international interest rates are falling, high local inflation continues to hold back the central bank from lowering rates. Sectors like water and energy still hold IPO potential if conditions improve.

In Mexico, the outlook is also mixed. Falling interest rates and a pro-business stance from President Claudia Sheinbaum offer promise, but US tariff volatility threatens to undermine momentum. With US$500 billion in exports to the US—nearly 28% of Mexico’s GDP—any disruption in trade policy directly impacts IPO feasibility.