November 15, 2019 / 9:27 PM / 24 days ago

Brazil's largest digital broker XP files for Nasdaq IPO

SAO PAULO (Reuters) - Brazil’s largest digital broker, XP Inc, on Friday filed for an initial public offering on Nasdaq.

The company plans a dual-class share structure giving controlling shareholders of Class B shares 10 times the voting rights of Class A shares sold in the offering.

Goldman Sachs, JPMorgan Chase & Co, Morgan Stanley, Itau BBA, Bofa, Citigroup, Credit Suisse and UBS are the IPO’s underwriters.

According to the preliminary prospectus, XP has 1.5 million clients and had revenue in the first nine months of the year of 3.7 billion reais ($889 million). Net income in the same period was 700 million reais ($168 million).

The broker received a banking license last year and plans to become a full-service lender.

The preliminary filing did not specify a price range or the number of shares the broker plans to sell.

A group of Partners led by XP’s founder and Chief Executive Officer Guilherme Benchimol, Brazil’s largest lender Itau Unibanco SA (ITUB4.SA) and investment firm General Atlantic are among XP’s shareholders.

Reporting by Tatiana Bautzer; Editing by Cynthia Osterman and Tom Brown

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