Brazil’s Arco Platform seeks to raise up to $200 million in IPO

Brazilian learning systems company, Arco Platform is planning to raise up to $200 million in an initial public offering (IPO) on Nasdaq expected in September.

According to a document the company filed with the Securities and Exchange Commission, they will only issue new shares in a so-called primary offering, and the amount raised will go to Arco’s coffers.

Arco was founded in 2004 and sells learning systems to 1,140 Brazilian private schools with more than 400,000 students. The company’s content is delivered to schools through both digital and hard copies.

According to Reuters, Arco posted a net income of 54.3 million reais ($13.88 million) in the first six months of 2018 and a net revenue of 195.1 million reais.

The company has hired the banks Goldman Sachs, Morgan Stanley, Itaú BBA, Bank of America Merrill Lynch, Allen & Company, BTG Pactual and UBS to manage the offering.

A second source revealed that banks would like Arco to raise the size of the offering to up to $300 million, but the company prefers to keep it smaller.


Source: Reuters

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