Knight Bridge Investment Consultants Limited – StoneCo Listing Update – Stock Soars 30%

HONG KONG - Oct. 25, 2018 - PRLog -- StoneCo, based in Brazil, priced 50.7 million shares at 24. That was above the expected range of 21 to 23.

StoneCo shares rocketed 30.6% higher to close at 31.35 on the stock market Thursday.

According to the StoneCo IPO prospectus, the company reported revenue of $165 million and net income of $22.7 million, for the six-month period ended June 30. The StoneCo IPO is the fourth tech initial public offering this year to raise proceeds above $1 billion. That's the highest level since 2004, which had five.

StoneCo Ltd priced its initial public offering (IPO) above its initially suggested price range, raising $1.5 billion, one person with knowledge of the matter said.

Strong demand allowed the company to sell its shares at $24, above the range of $21-$23, and raise the total amount of shares, the person added, asking for anonymity to discuss the deal details. StoneCo and its shareholders had initially expected to raise up to $1.1 billion.

The pricing was pulled forward from Thursday to Wednesday, shrugging off concerns that sent Nasdaq down 4.4 percent on Wednesday.

Even before setting the price for its shares, Stone had already lured for the IPO big-pocketed investors, such as Warren Buffett's Berkshire Hathaway Inc and Chinese e-commerce giant Alibaba's payment affiliate Ant Financial.

Controlled by founders André Street and Eduardo Pontes, StoneCo shareholders include 3G Capital Inc partners Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira, as well as Madrone Capital Partners, a U.S.-based investment firm that manages part of the fortune of the Walton family, the majority owners of Wal-Mart Stores Inc..

Stone said in a securities filing it intends to use the proceeds for mergers, acquisitions and working capital. It said it intends to grow by offering banking services and creating a loyalty program.

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