Brazilian financial technology firm PagSeguro Digital Ltd. priced its follow-on public offering of class A common shares at US$39.00 apiece, representing an aggregate offering amount of about US$653.3 million.
Parent company Universo Online S/A, the sole selling shareholder in the offering, is divesting 16,750,000 shares in PagSeguro and has given the underwriters a 30-day option to purchase up to 2,512,500 additional shares.
PagSeguro's class A common shares are listed on the New York Stock Exchange under the symbol "PAGS." The offering is expected to close on Oct. 21.
PagSeguro shares fell up to 20% on Oct. 15 after the company announced the offering's launch, Bloomberg News reported.
"Some investors are anxious about the ongoing relationship between parent UOL and PAGS in part because of the intra-corporate operating agreement between the two entities that includes marketing on the UOL platform," Susquehanna analysts said in a note. "But note that after the secondary, UOL will still own 45.3% of outstanding shares" assuming underwriters do not exercise the option to purchase more shares, the analysts said.
PagSeguro recently said it expects third-quarter net income to total between 330 million reais and 340 million reais, which would represent an increase of between 42.5% and 46.8% from the year-ago period.
Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and Citgroup Global Markets Inc. are serving as underwriters for the offering.
As of Oct. 16, US$1 was equivalent to 4.16 Brazilian reais.