
Mexico's Werner forecasts more IPOs on pension rules

MEXICO - Mexican Deputy Finance Minister Alejandro Werner said rules allowing pension funds to invest in stocks will lead to more initial public offerings.
The regulations implemented over the past year will bolster the supply of capital for Mexico's stock market, Werner said on a panel hosted by Bloomberg in New York. Offerings will also rise as government efforts to boost competition in industries such as telecommunications allow more companies to flourish, he said.
"This will be a trend," Werner said. "It will also get complemented by the pro-competition policies."
Mexico's IPO market is reviving as the economy recovers from its worst recession since 1932. A 22-month drought came to an end when retailer Grupo Comercial Chedraui SAB sold shares last week. Brokerage Grupo Actinver SA may sell shares in May, according to documents filed with the Mexican Stock Exchange.
Mexican pension funds, which have assets equal to about 10% of gross domestic product, gained the right over the past year to invest in stocks, IPOs and infrastructure funds.
The lower house of congress last week approved legislation that would increase fines on companies that act as monopolies. The Senate has yet to vote on the bill.
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