Brazilian Digital Brokerage & Wealth Management Company XP Closes Initial Public Offering After Issuing & Selling More Than 83 Million Class A Common Shares

XP (Nasdaq: XP), a digital brokerage and wealth management company based in Brazil, announced on Friday it closed its initial public offering (IPO) of 83,387237 of its Class A common shares at a public offering price of $27 per share. XP reported that it issued and sold 42,553,192 Class A common shares and its selling shareholders sold an additional 40,834,045 Class A common shares. The shares notably began trading on the Nasdaq Global Select Market on December 11, 2019, under the symbol “XP.”

Founded in 2011, XP’s mission is to disintermediate the legacy models of traditional financial institutions by:

  • Educating new classes of investors
  • Democratizing access to a wider range of financial services
  • Developing new financial products and technology applications to empower clients
  • Providing high-quality customer service and client experience in the industry in Brazil

The company further explained:

“XP provides customers with two principal types of offerings, (i) financial advisory services for retail clients in Brazil, high-net-worth clients, international clients and corporate and institutional clients, and (ii) an open financial product platform providing access to over 600 investment products including equity and fixed income securities, mutual and hedge funds, structured products, life insurance, pension plans, real-estate investment funds (REITs) and others from XP, its partners and competitors.”

XP further revealed that Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley, XP Investments and Itaú BBA acted as Global Coordinators in the offering, and Goldman Sachs & Co. LLC, J.P. Morgan, Morgan Stanley, XP Investments, Itaú BBA, BofA Securities, Citigroup, Credit Suisse, and UBS Investment Bank collectively acted as Joint Bookrunners of the offering. The company added that XP estimates the net proceeds to it from the offering to be approximately US$1,100 million, after deducting underwriting discounts and commissions before expenses. XP will not receive any proceeds from the sale of Class A common shares by the Selling Shareholders.


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