Narayan AmmachchiZorzal Inversiones Tecnológica, a subsidiary of Uruguayan investment firm Capital Oriental, is preparing for a public offering in June, with the primary objective of raising funds to support the country’s thriving IT and software services providers.
Based in Montevideo, Zorzal intends to offer shares valued at up to US$15.5 million, earmarking the proceeds to acquire minority stakes in at least five local technology companies with annual sales exceeding US$3 million.
Uruguay’s tech industry, valued at US$2.8 billion, has garnered significant attention, considering the country’s population of 3.4 million. Its per capita IT exports ranked highest in South America in 2022, according to the country’s export promotion agency.
Zorzal appears to emulate the model of US investment giant Berkshire Hathaway, focusing exclusively on investments in the nation’s software and IT services providers.
The firm plans to distribute 7% of invested capital in dividends to shareholders annually, offering potential for capital appreciation as its stock price appreciates over time.
Zorzal’s investments are expected to drive the expansion of operations among Uruguayan technology companies while fostering corporate governance best practices within the industry, according to analysts.
With the prospect of investment opportunities from firms like Zorzal, smaller IT companies are anticipated to bolster governance structures, enhance transparency and reinforce accountability standards to attract future investments.
Firms such as Zorzal were unable to list their shares on the Uruguayan stock exchange until two years ago when the government streamlined IPO regulations, specifically aiming to promote IT companies through entities like Zorzal.
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