Brazil’s TradersClub raises US$117 million in IPO and plans acquisitions
RIO DE JANEIRO, BRAZIL – TC (TRAD3) social platform for investors, formerly known as TradersClub, listed its initial public offering (IPO) on Monday, July 26, at R$9.50 (US$1.84) per share, two sources close to the deal said. Indicative price ranged from R$9.00 to R$11.25.
The listing marks the culmination of the platform’s meteoric rise from an investor community that reflects the fast development of the Brazilian stock market and of the market as a whole in recent years.
The fully primary offering, i.e., with funds going into the company’s coffers, totaled R$607 (US$117) million, without the hot issue and with the greenshoe option. The operation values the company at around R$2.7 billion.
Trading will start in the B3’s Novo Mercado segment on Wednesday, July 28.
The funds raised from the offering will be used for M&A, with strategic acquisitions to enable the enhancement of the company’s ecosystem and investments in the development of the TC platform and in marketing.
This strategy had been disclosed by the partners in April, when it announced the purchase of Sencon, considered the largest company in calculating taxes on stock gains and issuing DARF.
Founded in 2016 by Pedro Albuquerque, Rafael Ferri and Israel Massa, TC offers services such as financial education content, news and forums on investments, with wide penetration in the traders’ audience, which gave rise to the company’s first name. TC had a user base of 473,000 on its app in April.
TC’s plan is for the offering to be a turning point to further accelerate the content and services platform’s growth for individual investors, according to sources who had access to arrangements for the transaction.
Instead of financial products, TC’s model is SaaS (Software as a Service). The main sources of revenue are the sale of content subscriptions, services and courses, always in the area of investment.
The success case taken as a reference is the listing of Coinbase, the world’s largest cryptoactive broker, on Nasdaq last April. In its first week as a public company its app was downloaded 2.7 million times, with a growth of approximately 300% over the then-current averages.
In 2020, TC posted net revenues of R$40 million, with EBITDA of R$18.8 million and net income of R$13 million. In the first four months of 2021, revenue totaled R$21 million, with EBITDA of R$663,000 and a loss of R$26,000.
TC’s client base reached 75,000 paying users on April 30.
Source: Exame
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