Brazil's StoneCo prices IPO at $24 per share

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Brazil's StoneCo IPO raises $1.5 bln, prices above range

By Carolina Mandl

SAO PAULO, Oct 24 (Reuters) - Brazilian credit card processor 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.

Even before setting the price for its shares, Stone had already lured for the IPO big-pocketed investors, such as Warren Buffett'sBerkshire 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.

Reuters reported in August the hiring of Goldman Sachs & Co, JPMorgan Chase & Co and Citigroup Inc as lead managers of the IPO and the intention of the company to go public in January. Stone shares will debut on Nasdaq on Thursday.

This article appears in: Politics , World Markets , Economy , US Markets , Stocks , IPOs
Referenced Symbols: BABA ,

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