(Adds talks to sell a minority stake in XP to Itaú before the
SAO PAULO May 10 Brokerage firm XP
Investimentos SA, which is discussing a minority stake sale to
Brazil's largest bank, is filing for an initial public offering
that could be the first listing of an independent broker in
Latin America's largest economy.
According to a documentation filed with securities industry
watchdog CVM, XP and several shareholders will sell an
unspecified number of units in the transaction, a blend of XP's
common and preferred shares. Details on the suggested price tag
for the units or a timetable for the deal were not unveiled.
Under terms of the IPO, XP will sell new shares to fund
expansion and pay for a recent acquisition. Founder and Chief
Executive Officer Guilherme Benchimol, 238 XP partners and U.S.
buyout firm General Atlantic LLC are among shareholders selling
XP's stock in a so-called secondary offering, the document said.
XP has acknowledged that Itaú Unibanco Holding SA has made a
proposal to acquire a minority stake. Exame Magazine reported on
Tuesday that Itaú offered to pay up to 6 billion
reais ($1.9 billion) for a 49.5 percent of XP.
Itaú's bid values XP at the lower end of range at which the
brokerage would seek to be priced, between 12 billion reais and
21 billion reais. Reuters reported on March 17 that shareholders
of XP could still negotiate a stake sale to an investor prior to
Founded in 2000, XP Holding has successfully challenged
banks for a significant share of Brazil's market for brokerage
services for retail investors. The company boasts low
transaction fees and an extensive network of autonomous dealers.
In recent years XP has grown into asset management, and is now
seeking a banking license in Brazil and set up wealth management
advisory points in the United States and Switzerland.
JPMorgan Chase & Co has been hired as leading
underwriter, alongside Itaú, Morgan Stanley & Co, Banco
do Brasil SA, Grupo BTG Pactual SA, Bank
of America Merrill Lynch, Banco Bradesco SA, Goldman
Sachs Group Inc and J. Safra Corretora SA.
XP's securities unit will also work as underwriter in the
IPO, the document said.
($1 = 3.1672 reais)
(Reporting by Bruno Federowski, Tatiana Bautzer and Aluisio
Pereira; Editing by Guillermo Parra-Bernal, Sandra Maler and