Shares in Brazil's Cogna rise 3% as education company considers IPO of K-12 division (updated)

Afya

21/11/2019 19:23

(Updates with new sourcing)
    SAO PAULO, Nov 21 (Reuters) - Shares in Brazilian education
company Cogna  COGN3.SA  rose up to 5.9% and were up around 3%
in late afternoon trading on reports of an initial public
offering of its K-12 division, known as Vasta Educação in the
United States.
    Cogna is considering the listing of the division, one source
with knowledge of the matter said, and has already hired banks
to manage it. The source asked for anonymity to disclose private
talks.
    Investment banking units of Goldman Sachs & Co, Morgan
Stanley, Bank of America and Itau Unibanco Holding SA have been
hired to manage the offering, according to the report.
    Brazilian financial blog Brazil Journal reported the
transaction earlier on Thursday and said Cogna seeks a valuation
of roughly 8 billion reais ($1.90 billion) for VASTA, sending
shares up 3%.
    Cogna wants to list its K-12 division following the steps of
other Brazilian education companies such as Arco Platform Ltd
 ARCE.O  and Afya  AFYA.O  , that listed their shares in the
U.S.
    Cogna did not immediately comment on the matter. 
    


($1 = 4.2125 reais)

 (Reporting by Carolina Mandl
Editing by Chizu Nomiyama)
 ((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11
97116-3806;))