RISE OF THE MOTOR INDUSTRY IN THESTOCK EXCHANGE

Posted in Brazil, Business on Dec 04, 2015

The automotive industry is attracting more and more investors into the stock exchange. Despite the recent scandals that have affected the big wigs, there is evidence investment there brings in the needed revenue. MarcioAlaor, the vice president of Banco BMG, gave a brief view of the numbers in a recent interview.
MarcioAlaour gave a history of motor manufacturer going public starting with General Motors, which went public in 1915.It was before people thought that possible. It is today valued at $ 53.52 billion .Ford Motors announced its IPO in 1956.It was the greatest at the time and attracted 600 million calls. It was an already established company with a well-known brand. Its IPO was hence a hot cake in the market.
Initial public offering or IPO as is commonly known is where by a company floats shares in the stock exchange to the public for the 1st time. It is the 1st process of turning a private company to a corporation. It helps an organization raise funds. According to Marcio Alaor, Ferrari recently floated an IPO that saw its stock increase in value by 5% to $ 10 billion. According to data published by Marcio some French motor manufacturers have seen their stock value rise by an average of 50%.Others like Tesla have stock valued at more than $ 211 apiece. It shows motoring companies continue to perform well.
Marcio Alaor is the Vice President if Banco BMG.It is Brazil’s largest consigned Credit lender. It has over 5 million customers and growing fast. It has also built a network of over 3000 points of sale terminals with over 50000 agents around the country. In the consigned market category; it controls 80% of the market. The market is currently about 50% penetrated. It is a segment 62 other banks are fighting for the remaining share.
Banco BMG has been in existence fir the last 85 years. It has served Brazil since 1930.The Guimares family owns it, and Ricardo Guimares is its president. It is affiliated with BMG group based in Hollad.It uses its international connections to float bonds in the international market and get money to expand its operations. It is also the biggest corporate sponsor in Brazil currently. It sponsors many football clubs including Santos. It is also the official sponsor of Marcelo Melo, the Tennis prodigy.

Source: Exame Magazine

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