With Eye on US$260 Million Prize, Brazil’s Linx to Start IPO Trading on Friday

Brazilian IT and software company Linx SA is gearing up for its initial public offering. Pricing for the IPO, Brazil’s first in over six months, is expected to take place today.

Linx and its shareholders hope to raise between US$222 million and US$260 million (R$450 million and R$528 million). According to Reuters, Linx and state development bank BNDES plan to sell 17 million common shares priced between US$11.50 and US$13.50 (R$23 and R$27) per share, including 5.95 million shares from Linx shareholders.

Linx is a strong player in the Brazilian technology market, and a successful IPO could mean a rebound for new share sales in Brazil, which have suffered due to slowed economic growth. In fact, only three Brazilian companies held IPOs in 2012, and six postponed or withdrew their IPO plans all together.

With a nearly 30-year trajectory, Linx is Brazil’s leading retail software providers. It has over 10,500 customers in Brazil, Latin America and Europe that operate in various retail-related sectors. In the first nine months of 2012, it posted US$94 million (R$187) in revenues, outdoing its earnings from the year prior even without quarter four.

Trading for the Linx SA IPO will start this Friday, February 8th.