Event discussed opportunities for companies to go public in Canada
The Chamber of Commerce Brazil-Canada, through its Chapter BH, held a meeting of the Economic Affairs Committee (CAE) on August 9th to discuss the IPO of companies from the state of Minas Gerais in Canada. The event featured talks by Guillaume Légaré, from TMX; Franz Brandenberger, from the Canadian Consulate; Marcello Faria, from the MG State Government; and Henrique Tavares, from Invest Minas.
The executives highlighted the business potential that can be generated in the Canadian market. To give an idea, the Toronto stock exchange currently has 3,500 companies listed, of which only 36 are Brazilian or have some connection with Brazil, a much smaller number than companies from other Latin American countries, such as Chile and Argentina. Most of the listed companies are in the mining sector, followed by technology and services. “There are many opportunities in Canada and companies need to prepare and gather information about the Canadian market. In this sense, CCBC has the entire structure to support entrepreneurs who want to expand their businesses in the North American country, connecting them to the right stakeholders, such as TMX,” explains Daniella Leite, CCBC’s Business Director.
The speakers also pointed out that Canadians see Brazil as a very promising market. However, it is clear that due to tax issues, legal security and even licensing in the mining market, the pursuit of foreign capital is not strongly explored by Brazilian companies.
During the event, the Toronto stock exchange was presented as an alternative for companies considering going public in the international market. Daniella recalls that the fact that the stock exchange is smaller than the Nasdaq or Dow Jones in the United States, destinations frequently sought after by companies, can be a “gateway” for companies that want to start or expand business abroad.
The speakers also highlighted that there is no right moment to go international, but it is important for companies to prepare, as the process of going public requires compliance costs that are not always covered by the companies.
In addition to the expertise of the experts, companies from Minas Gerais can also rely on the support of the state government, through the Secretariat for Economic Development and also the state’s promotion agency, Invest Minas, CCBC’s partners in the project to prepare companies that want to expand their business to Canada.
Invest Minas concluded the 2019-2022 term with a historic performance in attracting new business and generating jobs, with R$274.4 billion in formalized investments, 83% more than the target set at the beginning of the term. “The results contribute to generate a chain reaction, with investments in various sectors, such as hotels, restaurants and many others,” says Daniella.
The event also featured insights from the participating companies on how to improve trade flows and reduce bureaucracy in sectors such as mining, health, consultancy, food and beverages, all relevant topics that the Consulate and CCBC will remain attentive to. “We will start holding sectoral meetings in the state and at the end of September, CCBC will hold a meeting with companies from the coffeefarming sector,” she explains.
With the support of the Chapter’s coordinators, Tiago de Mattos Silva, partner at Willian Freire Advogados, and Erik Rodrigues Silveira, CCO and Co-Founder at InterAduaneira, CCBC is continuously working to promote actions that encourage companies in the state to benefit from trade opportunities with Canada.