XP’s founding partners and General Atlantic bid $1B shares in NY

LatamListXP Inc just announced that the asset manager General Atlantic and the founding holding company, XP Controle, will make a secondary offering of $1B for up to 22.4 million shares on Nasdaq. 

The company ended the day at about $24B, after being valued at just under $15B at the IPO in December 2019. Before the offer was announced today, the managers account for almost 16% of the platform’s capital.

More than 70% of the shares offered are from General Atlantic (GA) which is equivalent to about 20% of its position in the company. GA joined XP Investimentos in 2012, investing USD$80.2M (R$430M) at a valuation of USD$261M (R$1.4B). In 2018, it sold part of its share to Itaú, when XP Inc. was valued at USD$2.2B (R$12B), 8.5 times what it paid to enter.

XP Controle, which today holds 23% of XP Inc’s total capital, will sell up to 4% of the business. The holding’s money will be used to repurchase shareholdings and taxes. The operation will be coordinated by JP Morgan, Goldman Sachs, and Morgan Stanley.

The company also anticipated some figures for the second quarter. Net income may more than double in the annual comparison, as it is estimated to be between $78M and $97M (R$420M and R$520M), from April to June, compared to $42.5M (R$228M) in 2019. Gross revenue is expected to increase 50% to 60% for an estimated range between $9.9B and $10.6B (R$1.85B and R$1.98B).

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