Brazil’s XP Investimentos advances IPO talks

XP Investimentos has advanced talks with a group of banks ahead of a potential IPO in July, sources told LatinFinance.

The Brazilian financial services firm has picked the bookrunners to lead the equity offering, which could be worth more than $1.5bn, two equity capital markets bankers said. The sources did not identify the banks that will lead the transaction.

“This could be bigger than Cuervo,” one banker said. The company has been valued between BRL12bn ($3.78bn) and BRL20bn, he said. Mexican tequila maker Jose Cuervo in February raised MXN18.6bn ($912m at the time) in an IPO.

Private equity firm General Atlantic will sell some of its 49% stake in XP. The proceeds from the primary share offering will go to XP, while General Atlantic will get the proceeds from a secondary sale, a second banker said.

XP opened discussions with banks about an IPO in January.