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Vasta announces plans for US IPO
Posted on Wednesday, 08 July 2020 06:14
K-12 educational technology provider Vasta Platform has filed a registration document with the US Securities and Exchange Commission for an initial public offering (IPO) on Nasdaq. The Brazilian business, being spun out from Cogna, set a placeholder of USD 100.00 million for the flotation but did not release terms such as the number of shares being sold, the price or the ticker symbol it plans to list under. Goldman Sachs, BofA Securities, Morgan Stanley, Itau BBA, UBS Investment Bank and Bradesco BBI have been hired as joint underwriters for the transaction. Vasta has developed a platform as a service with two main modules: the content and edtech arm, offering complementary education solutions with digital and printed content through long-term contracts with partner schools and its digital application, unifying its partner school administrative ecosystems. At 31st March 2020, its customer base included 1.30 million students at 4,167 schools, rising from 3,400 at 31st December 2019. Vasta plans to use the net proceeds to repay part of its debt owed to parent company and the other half to fund expansion through future acquisitions, or investments in complementary businesses, products or technologies. The group posted net revenue from sales and services BRL 392.40 million (USD 73.64 million) in the three months to 31st March 2020, up 11.1 per cent from BRL 353.10 million in the corresponding period of 2019. Net profit during the same timeframe totalled BRL 27.60 million, compared to a profit of BRL 14.90 million in Q1 2019. There have been 19 IPOs of Brazilian companies announced in 2020 to date, according to Zephyr, the M&A database published by Bureau van Dijk. In the largest of these, Allied Tecnologia filed for a stock market flotation on the Sao Paulo Stock Exchange to raise up to BRL 1.40 billion. Mitre Realty Empreendimentos e Participacoes, Locaweb Servicos de Internet, Empreendimentos Pague Menos and Mataboi Alimentos, among others, have also announced plans to go public in the year so far. © Zephus Ltd