Agibank opened its first day of trading on the New York Stock Exchange with Class A common shares priced at $11, below the initial public offering level of $12 per share.
The company, registered as AGI Inc and commonly referred to as Agi, had set the IPO at 20 million Class A common shares at $12 apiece. That price was at the lower bound of a previously reduced marketing range that ran from $12 to $13 per share.
Based on the outstanding shares disclosed in its regulatory filings, the technology-enabled financial services provider is trading at a market capitalization of $1.76 billion following the opening price.
Under the terms of the offering, Agibank has given the underwriters a 30-day option to buy as many as 3 million additional Class A common shares. Any exercise of that option would be at the IPO price, minus the customary underwriting discounts and commissions.
A group of global and regional firms led the transaction logistics. Goldman Sachs and Morgan Stanley are listed as active global coordinators on the deal. Citigroup is named as a passive global coordinator. A number of banks served as passive joint bookrunners, including Bradesco BBI, BTG Pactual, Ita fa BBA, Santander, Societe Generale and XP Investment Banking. Oppenheimer & Co. and Susquehanna Financial Group are noted as co-managers.
The opening trade at $11 contrasts with the $12 pricing set when the company placed its 20 million Class A shares, and it follows the decision to set the offer at the lower end of an already trimmed price band. The structure of the offering leaves open the possibility of additional share issuance to underwriters within the 30-day window, subject to the terms described above.
Background details from the offering:
- Shares opened on the NYSE at $11, below the $12 IPO price.
- IPO consisted of 20 million Class A common shares priced at $12 each.
- Market value calculated at $1.76 billion, based on outstanding shares in regulatory filings.
- Underwriters have a 30-day option to buy up to 3 million additional Class A shares at the IPO price, less underwriting discounts and commissions.
- Goldman Sachs and Morgan Stanley acted as active global coordinators; Citigroup as passive global coordinator. Bradesco BBI, BTG Pactual, Ita fa BBA, Santander, Societe Generale and XP Investment Banking served as passive joint bookrunners. Oppenheimer & Co. and Susquehanna Financial Group were co-managers.