Locaweb Serviços de Internet SA filed for a public listing in a bid to raise up to 1.03 billion reais (about $246.4 million), according to S&P Global Market Intelligence data.
The Brazilian web services provider plans to offer 59.9 million shares, including an overallotment option.
The IPO's size includes 33.3 million new company shares, with Locaweb shareholders such as private equity firm Silver Lake and founder family Gora selling an additional 26.6 million shares, Reuters reported, citing a securities filing.
Locaweb intends to use the listing's proceeds to cut its debt and acquire companies. Following the IPO, the company could have a diverse range of shareholders, but no controlling shareholder, according to the report.
Locaweb tapped the investment banking units of Itau Unibanco Holding SA, Goldman Sachs, Morgan Stanley and XP Inc. to manage the offering.
As of Jan. 16, US$1 was equivalent to 4.18 Brazilian reais.