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Vasta Platform prices IPO
Posted on Friday, 31 July 2020 08:52
Vasta Platform, owned by Brazilian for-profit education firm Cogna Educacao, has priced its previously announced initial public offering (IPO) to raise USD 352.93 million.

Under the terms of the stock market flotation, the business is offering 18.58 million class A common shares at a price of USD 19.00 apiece.

The group is listing on Nasdaq under the symbol VSTA in a deal expected to close on 4th August 2020.

Goldman Sachs, BofA Securities, Morgan Stanley and Itau BBA USA Securities have been hired as joint underwriters for the IPO and have been granted a 30-day overallotment option to purchase an additional 2.79 million class A common stocks.

Vasta is a leading, high-growth education company in Brazil powered by technology, providing end-to-end educational and digital solutions that cater to all needs of private schools operating in the K-12 educational segment, ultimately benefiting all of the group’s stakeholders, including students, parents and educators.

The business believes they are uniquely positioned to help schools in the country, with digital transformation bringing education skillset to the 21st century.

Vasta has been linked to an IPO since filing a draft registration document with the US Securities and Exchange Commission in November 2019.

The company plans to use half of the proceeds raised from the flotation to repay part of the BRL 1.60 billion (USD 309.47 million) debt owed to its parent company.

Vasta will use the remaining 50.0 per cent of the cash to fund expansion through acquisitions or investments in complementary businesses, products or technologies.

In the three months ended 31st March 2020, the business posted net revenue from sales and services of BRL 392.40 million, up 11.1 per cent from BRL 353.10 million in the corresponding period of 2019.

Net profit for the period increased 85.2 per cent to USD 27.60 million in Q1 2020 (Q1 2019: USD 14.90 million).

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