Business

Brazil's BV Bank files for IPO registration

The initial public offer is expected to happen in April and to raise BRL 5 billion

Brazilian bank BV files for IPO. Photo: Facebook

Brazilian bank BV, formerly known as Banco Votorantim, has filed for IPO registration, as confirmed by Forbes and first reported by Reuters

Initially scheduled to take place in April, the operation would worth a total estimated value of about BRL 5 billion. BRL 1 billion would be a primary offer, while the remaining BRL 4 billion would correspond to the secondary offer, with State-controlled Banco do Brasil and Votorantim Finanças, Votorantim Group’s financial wing, taking BRL 2 billion each, according to Reuters’ sources. Goldman Sachs, JPMorgan, BB Investimentos, Itaú BBA, Morgan Stanley, Bank of America Merrill Lynch and UBS will head the transaction, according to information from the Brazilian Securities and Exchange Commission (CVM). 

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BV is Brazil‘s fifth-largest private bank in assets, and a leader in financing used vehicles, with a 25% share in the sector, which has experienced a recovery since 2019, following the country’s gradual recovery of the economy. Resources raised with the IPO will be applied to expand BV’s credit offer and for investments in BVx, its innovation business venture.

The bank also considers itself as the country’s financial institution most connected to startups and fintechs and has partnerships with platforms such as GuiaBolso, Banco Neon and the group of educational loans Pravaler.