GIC-backed Hotmart hires banks for Nasdaq IPO: sources

[SAO PAULO] Technology company Hotmart has hired banks for an initial public offering (IPO) to raise roughly US$500 million, likely by year-end, three sources familiar with the matter said, the latest in a series of Brazilian tech startups looking to go public.

Goldman Sachs, JPMorgan Chase and Morgan Stanley will be lead underwriters on the deal, two of these sources added. It would take place on Nasdaq, all three sources said, declining to say how the proceeds would be used.

Considered a unicorn, given its private valuation of over US$1 billion, Hotmart is a cloud-based platform which allows entrepreneurs to create, market and manage online businesses.

The fast-growing company, which has been expanding outside Brazil and bulking up through acquisitions, plans to raise between US$400 million and US$600 million in the offering.

Founded by Joao Pedro Resende and Mateus Bicalho, onetime computer science classmates at the same university in the state of Minas Gerais, Hotmart's investors include General Atlantic, Singapore's GIC and Koolen & Partners. In April, TVC Investments and Alkeon Capital also joined the company, financing a US$130 million funding round.

The planned IPO is the latest sign of how some Brazilian tech companies are looking to broaden their horizons after a raft of funding rounds in the last years.

Earlier this week, payments company Ebanx announced a US$430 million funding round with Advent International and plans for an IPO by the beginning of 2022. Vtex, a software provider for e-commerce backed by SoftBank Group, has also hired banks for a listing on Nasdaq.

REUTERS