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WHAT CAN AFFECT REDECARD?

Brazil's Redecard, a credit card processor and merchant acquirer is set to complete its IPO next week. The company is jointly owned by Citibank Brazil, Banco Unibanco, and Banco Itaú - the largest private bank in Brazil. The IPO is set for 140.8 million shares with an additional 35% in a greenshoe. The IPO could raise over $1.7 billion and would qualify as Brazil's largest IPO ever.

What are some of the potential risks that Redecard could encounter and how would these affect the company? Jan Smith, Managing Partner of InfoAmericas, answers some of the most frequent questions asked to InfoAmericas since RedeCard started its roadshow in late May.
 

THE MEXICAN PHARMACEUTICAL MARKET: A STRONGHOLD FOR FDI

The Mexican pharmaceutical market is Latin America’s largest, growing at 12% per year and a good entry point into the region.

By penetrating the Mexican healthcare market today, companies not only ensure market presence for the future, but also establish a stronghold for penetrating the rest of Central and South America in the upcoming years.

LATIN AMERICA: FRIEND OR FOE TO AMERICAN AGRIBUSINESS?

As US exports have stalled, South American food exports have grown upwards of ten times faster than US competitors in key agrifood segments such as soybeans, rice, corn and wheat. Mexico, Colombia, Venezuela, the Caribbean and parts of Central America together are net importers of agricultural products and are faithful customers of American food exports, to the tune of $15 billion per year.

Besides being a growing market for US agrifood that can divert exports southward instead of westward, Latin America may also provide US agrifood shippers with new options that will help to lower US Pacific coast port congestion and lower shipping costs and delivery times.

DIRECT SALES IN LATIN AMERICA – CONTINUOUS INNOVATION

Direct selling helped nearly 5.6 million people in Latin America, particularly women, earn a salary during 2006. Women represent more than 80% of direct salespeople in the region. Working in this industry provides women the opportunity to earn money while adapting their working hours around the time dedicated to their families.

Although the region’s sales represent nearly half of the indisputable world-wide leader—USA, with US$31 billion retail sales for 2006—industry sales in Latin America are strongly growing, with 18% rise in retail sales to a record US$13 billion in 2006.

EVOLUTION OF URINARY CATHETER SYSTEMS IN MEXICO: LATEX VS SILICONE

Many years are still to come before public hospitals in Mexico and the rest of Latin America implement a daily rate of change of latex catheters and urine collection bags.

The adoption of silicone catheters is also not expected in the medium term, at least while silicone continues to cost 300% more than latex; however, strict change and removal protocols followed by these institutions have achieved a considerable reduction of urinary infections.