Redecard to Launch $1.7bn IPO

Brazil’s Redecard, a credit card company jointly owned by Unibanco, Itaú and Citi, will this week launch a Brazilian roadshow for an IPO, set for the second week of July, that will raise at least $1.7bn. The company is looking to price 140.8m shares, plus an additional 35% in a greenshoe, at BRL20-BRL25. Selling shareholder Itaú has the option to vend an additional 15%, while bookrunners Unibanco (lead), Itaú BBA and Citi can exercise a 20% greenshoe. A Bradesco BBI report values Redecard at BRL15-BRL17bn once it goes public. Roadshow stops are scheduled in Europe and the US. This is the first credit card company to go public in Brazil and if executed as planned, will be the largest IPO in the country’s history. Brazil’s consumer lending market has ballooned in the past two years as interest rates have moved steadily south.