Vitru downsizes IPO as expected price range gets cut

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Vitru Ltd. disclosed Thursday that its downsized initial public offering is now expected to price between $16 and $18 a share, down from previous expectations of $22 to $24 a share. The Brazil-based distance-learning education company reduced the number of shares it was offering in the IPO to 6 million shares from 11.23 million, as the expected amount it will raise has been lowered to up to $108.0 million from $269.5 million. With 23.06 million shares outstanding after the IPO, the company could be valued at up to $415.04 million, down from previous expectations of up to $553.39 million. The stock is expected to list on the Nasdaq under the ticker symbol “VTRU.” There are nine banks underwriting the deal, led by Goldman Sachs. Vitru recorded net income of R$52.4 million ($9.6 million) on revenue of R$256.7 million during the six months ended June 30, after a net loss of $25.1 million on revenue of R$234.5 million in the year-ago period. The downsized IPO and pricing expectations comes during a good market for IPOs, as the Renaissance IPO ETF has soared 59.2% year to date, while the S&P 500 has gained 4.8%.
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