Brazilian software company Linx has hired the São Paulo offices of White & Case LLP and Pinheiro Neto Advogados to raise US$308 million in its debut offering on the NYSE exchange and a follow-on equity offering on São Paulo's B3.
Simpson Thacher & Bartlett LLP in São Paulo and New York and Pinheiro Guimarães in São Paulo helped the underwriters. The deal closed on 26 June.
Linx made 83% of the offering through an IPO of American depositary shares (ADS) on New York's NYSE. The remainder was offered as common shares, which were sold on the B3 – the São Paulo Stock Exchange. The ADS in New York sold at 36 reais (US$9.4), while the shares in São Paulo were bought at 36.35 reais (US$9.47). The company sold 12% more equity than expected.
The company has given the underwriters a 30-day option to buy another 4.4 million shares, which corresponds to some 13% of the shares issued in the combined offering. Its stocks will be traded under the label LINX3 in São Paulo and LINX in New York.
Linx made its Brazilian IPO in 2013, raising 459 million reais (US$230 million). In 2016, it raised another 444 million reais (US$137 million) in a follow-on equity offering.
The company provides payment and business management services to the retail industry. It includes point of sale software, inventory, tax and accounting management services.
The offering comes only a month after the first local IPO conducted since President Jair Bolsonaro took office. Sports retailer Group SBF was listed on the B3 after raising 772 million reais (US$191 million) in May. Since Linx's float, power company Neoenergia raised 3.7 billion reais (US$956 million) in the biggest IPO in Brazil's electricity sector in 15 years.
Counsel to Linx
White & Case LLP
Partners John Guzman and Don Baker, counsel Abraham Paul and associate Cameron Royse in São Paulo
Pinheiro Neto Advogados
Partners Fernando dos Santos Zorzo and Guilherme Sampaio Monteiro, and associates Thais Ambrosano, Gustavo Ferrari Chauffaille, Felipe Morais Assunção and Victor Barone in São Paulo
Counsel to Goldman Sachs, Morgan Stanley, Jefferies, Merrill Lynch and Banco Itaú BBA
Simpson Thacher & Bartlett LLP
Partner Grenfel Calheiros and associates Paulo Fernando Cardoso and Winnie Loureiro in São Paulo; senior counsel Jonathan Cantor, associate Abigail Hopper and international associate Beatriz Cotrim in New York
Partners Francisco Pinheiro Guimarães and Cristina Tomiyama, and associates Fernando Friedmann and Paula Rodrigues in São Paulo
The article was updated on 4 July 2019.