Brazilian Chats up Buyside

Linx, a Brazilian provider of software to the retail sector, has started holding investor pre-education discussions ahead of a planned IPO, according to people following the process. The issuer filed for a transaction in December, and is heard aiming to launch as soon as the middle of this month. The IPO is to include primary shares as well as secondary shares sold by a private equity fund linked to Itau, according to regulatory documents. Linx booked BRL56m ($27m) in Ebitda in 2011, up from BRL40m in 2010. It is seeking to raise funds for acquisitions and for working capital. BTG Pactual, Credit Suisse, Itau and Morgan Stanley are managing the sale. Linx offers both cloud-based and on-premises products for Brazilian retailers. It has been operating for 27 years and claims 29% market share. Other Brazilian IPOs in the pipeline include fellow IT provider Senior Solutions, water utility Cedae, and a carve out of Banco do Brasil’s Insurance arm, with Vix Logistica and AutoBrasil possibly resurrecting processes initiated last year.