Business

Brazil's Locaweb announces a follow-on offering

The company intends to use all the net proceeds for the payment of acquisitions made and potential new acquisitions

Photo: Locaweb/LinkedIn
  • Locaweb approved a 4: 1 stock split;
  • The company intends to use all the net proceeds for the payment of acquisitions made and potential new acquisitions.

Brazil’s Locaweb announced in a material fact a follow-on of its shares. The operation will be mostly primary, but there may also be a secondary tranche, when current shareholders sell their slices, if additional and supplementary lots are exercised.

READ ALSO: Brazil’s Locaweb acquires Melhor Envio logistics platform for BRL 83 million

Locaweb approved a 4: 1 stock split based on the January 29 shareholding position. The restricted offer, considering the stock split, will consist of the public distribution of 68 million shares so it could move BRL 1.762 billion with that. If additional and supplementary lots are exercised, this amount rises to BRL 2.379 billion, notices Valor Econômico.

READ ALSO: In a series of acquisitions after its IPO, Brazil’s Locaweb acquires Curitiba-based Connectplug for BRL 18 million

The company intends to use all the net proceeds for the payment of acquisitions made and potential new acquisitions.