Good morning! Brazil’s most-awaited IPO will finally happen: XP Investimentos. South America’s move on Venezuela. Agro exports are down. And the president’s latest health report. (This newsletter is for platinum subscribers only. Become one now!)
Brazil’s most-awaited IPO will finally happen
Financial services company XP Investimentos has reportedly mandated JP Morgan, Goldman Sachs, and Morgan Stanley as book-runners for an upcoming initial public offering—to be held either on the New York Stock Exchange or Nasdaq. Pricing will happen between December and January 2020, with the IPO likely to be scheduled for early next year. The move comes two years after 49.9 percent of XP shares were purchased by Itaú, Brazil’s largest privately-owned bank.
Why it matters. One of the reasons for going public is to help finance the creation of an XP bank—which has been in the works for some time. The IPO could push the company’s value up to BRL 60bn, making it one of Brazil’s biggest financial firms. For the sake of comparison, Brazil’s top 4 private banks are valued at a combined BRL 850bn.
NY over SP. Like many Brazilian financial firms, XP opted to go public in New York, despite having to go through tougher...