On the other hand, for Amín Vera, investment director at Invala Famaly Office, although there would be more supply and the possibility of greater diversification, the most complex problem of the Mexican Stock Market is low demand. “That a stock market has relatively few stations is not necessarily a bad thing. For example, the stock markets of Nordic countries, such as Iceland, Sweden, Finland, Denmark, with few stations have a good volume of demand, even countries more similar to Mexico, such as Estonia, Hungary or Lithuania.
Why are they not on the stock market?
The reason behind not taking a company public is multifactorial. One of the points is, for example, that there is the idea that, if a company is listed on the stock market, the owners lose some control of their own company, in addition to being more transparent and publishing all their information, something that businessmen don’t want it, according to Rodríguez.
Vera agrees that in Mexico there is a cultural problem in which businessmen consider that they do not need to go public to finance themselves. And on the contrary, in more developed markets, companies that are worth 1,000 times more than Mexican companies understand that the more open, the more transparent their businesses are and the more professional their corporate governance is, in the long term it results in more profits, better financing and a better environment for his own business, said the specialist.
Another limitation is the costs of listing shares on the Stock Exchange, which are around 10% of what the public offering represents. “It is a high cost and a cumbersome process because it takes several months, even though we are talking about very large companies. It is something that has been sought to be alleviated with the departure of the Institutional Stock Exchange (BIVA) but it has not been achieved,” concluded Rodríguez.