Since 2018, no Argentine company has made an initial public offer (IPO), but that could change if Javier Milei’s government advances with the CEPO Elimination to the dollar. According to Goldman Sachs, The opening of the capital market is essential to attract investors and consolidate economic recovery.
Goldman Sachs: The key is in the lifting of the stocks to the dollar
The American investment bank considers that President Javier Milei must prioritize the elimination of exchange restrictions to give certainty to markets and facilitate capital flow. “Markets need clarity and certainty that capital can move freely inside and outside the country. It is evident that the government understands and is working on it,” said Max Ritter, chief of mergers and acquisitions of Goldman for Latin America.
With the legislative elections on the horizon, the ruling party faces the challenge of consolidating its reform program. However, for Goldman, As important as the electoral result will be lifting the stocks, since the attraction of institutional investors will depend on the guarantee of stability and continuity in economic policies.
Energy and Export: the sectors with the greatest potential
According to Goldman Sachs, the first sectors to reactivate their stock market placements would be those linked to energy and export. Companies with dollars, especially those that operate in Vaca Muerta, could be the first to capture financing.
“Argentina is not only adjusting its economy to reduce deficit and inflation. It is going through a productive transition, moving from a protectionist model to a more export -oriented economy,” Ritter said, the Bloomberg agency reports.
In order for the Argentine capital market to recover dynamism, fund managers must see “quality monitoring operations with long -term investors,” said the executive.
Challenges and opportunities on the horizon
Despite optimism, significant risks persist. The main concern is that the elimination of exchange controls can cause a run against weight and revive inflation. However, it is projected that the Argentine economy grows more than 4% in 2025, promoted by expectations of a new agreement with the International Monetary Fund (IMF).
In contrast to international praise to Milei, foreign direct investment has been moderate. Multinational companies such as HSBC, Telefónica and Mercedes-Benz have sold their local operations in recent months, reflecting the caution of the private sector.
The country’s recent economic history is marked by opening and crisis cycles. The Euphoria Investor of Mauricio Macri’s management collapsed after his defeat in 2019, which generated a new period of controls and restrictions. However, in Goldman Sachs they see differences with that process.
“For the first time in a long time, the situation in Argentina feels different. It seems that the population understood the need to make deep adjustments to achieve a sustainable balance,” Ritter concluded.
If the Government manages to channel the departure of the stock without shocks, the return of companies to the stock market could mark a turning point in the Argentine economy.
Source: Ambito
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