IPOs

Brazilian lender plans to raise close to $1B in IPO

LatAm ListBanco Daycoval, a Brazilian lender, will relist its shares on the São Paulo stock exchange in April 2020, three years after taking the company private. 

In 2016 the bank’s shares stood at 50% of the value since its first IPO in 2007. The founders paid $2.11 (R$9.08) a share to take the bank private, a significantly reduced price compared to the $3.94 (R$17) a share of its debut price in 2007.

In this second IPO, the bank is counting on Brazil’s recovering economy and high valuations for a string of financial startups to boost its shares’ value. The offering is expected to raise between $700M (R$3B) and $930M (R$4B).

According to Reuters, the bank’s founders have hired investment banking units of Itaú Unibanco Holding SA, Banco BTG Pactual SA, Bank of America, and Banco Santander Brasil SA to manage the IPO.

Banco Daycoval has roughly $7.42B (R$32B) in assets and posted a net income of $150M (R$647M) in the first nine months of 2019, and a return on equity of 24.6%.

Read more on Reuters.

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