Tricom chairman Manuel Arturo Pellerano pointed out that the public offering is a benchmark move. "It is important because it will allow the nation to be known in the capital markets and will open the doors to other Dominican companies. Obviously this is an enormous opportunity for the Dominican Republic to be known. It is an achievement that transcends the Dominican frontiers and makes clear the strength of our economy and the present and future potential of Tricom," he said. The move is also important for business in general in Latin America. The public offering was the first from Latin America this year, especially significant in view of the Asian crisis that has caused other companies to postpone their initial public offerings. Reuters has reported that while some US$15 billion Latin American stock offerings are planned for 1998, the launches have been delayed. In the late afternoon of the first day, Tricom shares were trading at $12.50, below the offering price of $13. U.S. investors picked up 75% of the shares sold, U.S. brokers 25%, said the company. Ian Simpson, reporting for Reuters, explained that despite the drop in price, Wall Street analysts were saying the launch was important because it broke a drought for Latin American initial public offerings in the global market. The lackluster debut was said to reflect the reluctance of investors to become involved at the time in unknown companies from small countries and emerging markets. Moreover, Tricom also was overshadowed by the upcoming multibillion-dollar privatization of Brazil’s telephone company, Telebras. "It’s not doing too well, but they actually managed to place it," Federico Laffan, a Latin American portfolio manager at Warburg Pincus. "It’s a good start," he told Reuters. Two other Latin American companies that had planned initial public offerings – Ecuadorean cellular phone company Conecel and Colombian cellular phone firm Celumovil – called them off this year because of poor investor interest. Reportedly, Latin American companies sold a record US$4.5 billion in public shares last year, but offerings slowed to a standstill after the Asian financial crisis jolted regional markets late in 1997.
