XP, a fast-growing brokerage and wealth manager in Brazil, announced terms for its IPO on Monday.
The São Paulo, Brazil-based company plans to raise $1.7 billion by offering 72.5 million shares (41% insider) at a price range of $22 to $25. Entities advised by Durable Capital Partners have indicated an interest in purchasing up to $170 million of the IPO (10% of the deal). At the midpoint of the proposed range, XP would command a market value of $13.0 billion.
XP was founded in 2001 and booked $1.0 billion in revenue for the 12 months ended September 30, 2019. It plans to list on the Nasdaq under the symbol XP. Goldman Sachs, J.P. Morgan, Morgan Stanley, XP Investimentos, Itau BBA, BofA Securities, Citi, Credit Suisse, and UBS Investment Bank are the joint bookrunners on the deal. It is expected to price during the week of December 9, 2019.
