Linx Jumps at Debut After the First IPO in 2013: Sao Paulo Mover

Linx SA, the Brazilian communications technology provider, rallied 18.5 percent on its first day of trading following the country’s first initial public offering this year.

Shares of Linx, which priced at 27 reais in the IPO, surged to 32.00 reais at the close of trading in Sao Paulo. The benchmark Bovespa index rose 0.2 percent.

Linx, which provides communications technology and management software for retailers, is raising as much as 527.9 million reais ($267.9 million) in the offering, according to a statement Feb. 6. The company and its underwriters had estimated the shares would price within a range of 23 to 27 reais, according to a Jan. 18 prospectus.

“We can say the IPO was a success, as the share move today reinforces,” Sandro Fernandes, a trader at brokerage Corval, said by phone from Belo Horizonte, Brazil. “That’s a sign investors are a little more optimistic about Brazilian stocks.”

Linx sold 12.7 million of new shares and previous investors including Brazil’s development bank BNDES sold a further 6.84 million. The stock will be listed in Bovespa’s Novo Mercado section, where only voting shares can trade and at least 25 percent of a company’s stock must be available for trading.

The company’s IPO is Brazil’s first since furniture-maker Unicasa Industria de Moveis SA raised 425.6 million reais in April 2012.

To contact the reporter on this story: Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

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