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Banco BMG plans IPO
Posted on Monday, 07 October 2019 13:40
Brazilian lender Banco BMG is seeking BRL 1.60 billion (USD 394.14 million) in proceeds from a planned share sale in its homeland.

The company is issuing 103.40 million new shares, while stockholders will sell an additional 16.50 million scrips in the stock market debut.

Banco BMG has set a price range of between BRL 11.60 and BRL 13.40 for the listing, with the final decision on pricing expected to be announced on 24th October 2019.

Four days later, the lender is expected to complete its initial public offering (IPO), which is being led by XP Investimentos, Itaú BBA, Credit Suisse, Brasil Plural and BB Investimentos.

Banco BMG has 3.80 million customers and 4.00 million active consigned credit cards and is billed as one of the largest financial institutions in Brazil.

At 30th June 2019, the bank recorded total assets of BRL 19.17 billion, total liabilities of BRL 16.47 billion and deposits of BRL 7.54 billion.

Income from financial intermediation totalled BRL 1.66 billion in the six months to the same date, while recording profit for the period of BRL 138.89 million and profit per share of BRL 0.28.

Banco BMG plans to use the proceeds from the listing to invest in the development of new products such as payroll and innovations loan to its digital database.

The news comes after the group abandoned plans for a stock market flotation back in December 2018, when it was set to raise BRL 1.96 billion, due to market conditions at the time.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been three IPOs of Brazilian companies announced in 2019 to date.

The largest of these involves Neoenergia, a hydroelectric power generation, raising BRL 3.74 billion in July.

C&A Modas and Grupo SBF have also announced or completed IPOs this year.

© Zephus Ltd