Brazilian fintech Inter announces share offer that could raise $184 mln (updated)

Inter & Co

16/01/2024 23:08

(Adds comments from analysts in paragraphs 4-5, fourth-quarter
forecasts in paragraphs 7-10)
    By Peter Frontini and Andre Romani
       SAO PAULO, Jan 16 (Reuters) - Brazilian digital bank
Inter & Co  INTR.O  filed for a primary share offering in New
York that could raise up to $184 million, it said on Tuesday. 
    The Softbank-backed lender  9484.T  will initially issue up
to 32 million new class A shares, which could be increased by
4.8 million more, with proceeds destined for general corporate
purposes, it said in a securities filing.
    If all shares are sold, Inter would raise $184 million based
on Tuesday's closing price.
    Analysts at J.P. Morgan said the offering announcement was a
surprise, given that Inter does not need capital to fund loan
growth. 
    "We believe the potential rationale here is to improve class
A shares liquidity," said the analysts led by Yuri Fernandes in
a note to clients, explaining that Inter has been facing
liquidity challenges since it migrated its listing from Brazil
to Nasdaq in 2022.
    The offering's underwriters will be Goldman Sachs and BofA
Securities, the company said, adding the move remains subject to
market and other conditions. 
    In the same filing, Inter also released forecasts for its
fourth-quarter results, predicting that profitability, measured
by return on equity, will range between 8.0% and 8.3%, above the
5.7% reported for the previous three months.
    The bank also said it expects net profit to land between 150
million reais and 155 million reais ($31.5 million) for the
final quarter. The top range would land nearly 50% above its
result for the third quarter.
    The lender also predicted it would grow its active clients
base to between 16.3 million and 16.5 million at the end of
December, compared to 15.5 million three months earlier.
     
    ($1 = 4.9258 reais)

 (Reporting by Peter Frontini and Andre Romani; Editing by David
Alire Garcia and Michael Perry)
 ((Peter.Siqueira@thomsonreuters.com; +55 11 56447727;))