Brazil IT firm Tivit resumes IPO plans, say sources: Reuters

Brazilian information technology provider Tivit Terceirização de Processos, Serviços e Tecnologia SA has hired banks to resume plans for an initial public offering, two sources with knowledge of the matter told Reuters on Thursday.

Tivit, which is controlled by British buyout firm Apax Partners LLP, scrapped its IPO plans in September last year after investors viewed the company’s proposed 4 billion real ($967.47 million) valuation as too high.

The investment banking units of Banco BTG Pactual SA (BPAC3.SA), Itaú Unibanco Holding SA (ITUB4.SA), Banco Bradesco SA (BBDC4.SA) and JPMorgan Chase & Co (JPM.N) have been hired to manage the IPO, said the sources, who could not speak for attribution because the discussions are private.

Apax, Bradesco, Itaú and JPMorgan declined to comment. Tivit and BTG Pactual did not immediately comment on the matter.

Proceeds from the offering would go to the coffers of Apax, which paid 1.7 billion reais to acquire Tivit in mid-2010 in a buyout from then-controlling shareholders Votorantim SA and Pátria Investimentos Ltda.

Tivit, which provides cloud computing and IT infrastructure services in 10 Latin American countries, will probably wait for the outcome of Brazil’s October presidential election to file for the IPO, one source added.

The company reported a net income of 66.8 million reais in 2017, up 5.1 percent from the previous year. Tivit’s recurring earnings before interest, taxes, depreciation and amortization excluding one-off items, a gauge of operating profitability, increased by 21.9 percent to 393.6 million reais.

Other Brazilian companies, such as small retail bank Banco BMG SA [BNBMG.UL], are also speeding up their IPO plans as bankers consider there may be an opportunity for offerings when investors find out who the next president will be. The certainty provided by the vote, even if the victor is not a market favorite, should enable them to price offerings, the sources said.