April 12 Shares of Evertec Inc rose as
much as 10 percent in their market debut, valuing the payment
processor at $1.75 billion a day after it priced its IPO at the
top end of the expected price range.
Puerto Rico-based Evertec priced its 25.3 million shares at
$20 each, raising about $505 million. Shares of the company were
expected to be priced in a range of $18 to $20. Evertec had
previously intended to sell 21.1 million shares.
Evertec is the latest company to be taken public by private
equity firm Apollo Global Management LLC, which acquired
it from Puerto Rican lender Popular Inc in September
2010. Apollo held a 51 percent stake in the company prior to the
IPO, with Popular holding the rest.
With the IPO, Apollo holds about 37 percent of Evertec and
Popular owns 35.5 percent.
Global equity fundraising rose 24 percent in the first
quarter from a year ago, helped by strong markets and easing
concerns about the economy that encouraged more companies to
raise capital through IPOs and other capital market
Private equity-backed companies have been offering shares as
U.S. stock markets reached record highs, helping boost U.S. IPO
volumes by 65 percent so far this quarter. Apollo itself has
taken companies including Realogy Holdings Corp and
Berry Plastics Group Inc public in the past year.
Evertec processes over 1.8 billion transactions annually and
manages the electronic payment network for over 4,100 automated
teller machines and over 104,000 point-of-sale payment
It reported adjusted net income of $84.4 million on revenue
of $341.7 million in 2012.
Goldman Sachs and JPMorgan Chase & Co were the lead
underwriters for the offering.
Evertec shares were up 8 percent at $21.61 in early trading
on Friday. More than 7 million shares had changed hands, making
the stock the most heavily traded on the New York Stock