VisaNet Close to Refiling Jumbo IPO

Brazilian credit card provider VisaNet is close to filing its second attempt at an IPO, and market participants believe this time it will fly. The offering, tentatively slated for June, could raise BRL5bn-BRL7bn depending on investor appetite, says a banker familiar with the process. Exact details on pricing and timing are still a way off, and a CVM filing is pending. VisaNet is controlled by Bradesco (39%), Banco do Brasil (32%), Santander via Banco Real (32%) and Visa International (10%). All 3 banks will be bookrunners, with 2 spearheading the effort as global coordinators, says a banker on the deal. JPMorgan also joins the lead group, as a Visa relationship bank. Goldman Sachs and UBS Pactual, which was bought recently by BTG, are also rumored to be joining the lineup of bookrunners, though without a global coordinator title. The line up remains to be finalized. VisaNet filed an IPO in September – with all of the same banks, excluding UBS Pactual – but passed on a deal as markets tanked. In general, equity investors are looking for a large and liquid name. Like Redecard, VisaNet has the scale to deliver that. “Ideal candidates for an IPO are those that are large, with strong revenues and a liquid free float,” says Rogerio Poppe, equities portfolio manager at BNY Mellon Arx. He adds that issuance size needs to exceed BRL1bn per deal to be palatable for investors. Poppe thinks VisaNet is among companies that can place shares even when markets are unwelcoming. Rio-based BNY Mellon Arx manages over BRL5bn.