Jair Bolsonaro emerges as a risk factor for Brazil IPO pipeline

Competition, the pandemic and sectoral demand are common challenges facing companies planning initial public offerings (IPOs), but Brazilian companies have started to flag a new risk: political upheaval from President Jair Bolsonaro.

Cosmetics maker Coty and retailer Cencosud's Brazilian units included the risk of a presidential impeachment in their recent offering prospectuses, while Coca-Cola Co's distributor Solar Bebidas SA cautioned about turmoil ahead of the 2022 presidential elections.

Bolsonaro's recent confrontation with Brazil's Supreme Court amid an economic crisis has raised fears over the country's reform process and threatens to poison the environment for 25 IPOs-in-waiting, which — added to this year's