StoneCo, a Brazilian cloud-based online payment processor, announced terms for its IPO on Tuesday.
The São Paulo, Brazil-based company plans to raise $1.05 billion by offering 47.7 million shares (14% insider) at a price range of $21 to $23. Berkshire Hathaway and insiders intend to purchase up to $564 million worth of shares in the offering (combined 53% of the deal). At the midpoint of the proposed range, StoneCo would command a fully diluted market value of $6.0 billion and an enterprise value of $5.6 billion (90.1x LTM adj. EBITDA).
StoneCo was founded in 2012 and booked $287 million in revenue for the 12 months ended June 30, 2018. It plans to list on the Nasdaq under the symbol STNE. Goldman Sachs, J.P. Morgan, Citi, Itau BBA, Credit Suisse, Morgan Stanley, BofA Merrill Lynch and BTG Pactual are the joint bookrunners on the deal. It is expected to price during the week of October 22, 2018.
