StoneCo Ltd. Announces Launch of Proposed Follow-on Offering of Class A Common Shares

Rhea-AI Summary

StoneCo Ltd. announced a proposed follow-on public offering of $1.0 billion in Class A common shares, with an option for underwriters to purchase an additional $150 million. The proceeds will primarily finance the acquisition of Linx S.A. and cover related fees. If the acquisition does not proceed, funds will be allocated for general corporate purposes. The offering is filed with the SEC and will be coordinated by J.P. Morgan, Morgan Stanley, and Citigroup. StoneCo's shares are traded on Nasdaq under the ticker STNE.

Positive

• Public offering of $1.0 billion aimed at financing the acquisition of Linx S.A.
• Additional $150 million option for underwriters boosts potential capital raised.

Negative

• Depending on the acquisition's success for fund allocation may introduce uncertainty.

GEORGE TOWN, Grand Cayman, Aug. 11, 2020 (GLOBE NEWSWIRE) -- StoneCo Ltd. (“Stone” or the “Company”) today announced that it has launched a proposed follow-on public offering of $1.0 billion of its Class A common shares, which are being offered by the Company (the “Offering”) pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (the “SEC”). In connection with the offering, the Company has granted the underwriters the option to purchase up to $150 million of additional Class A common shares.

Stone’s Class A common shares are listed on the Nasdaq Global Market under the ticker symbol “STNE.”

Stone intends to use the net proceeds from the offering of the shares to finance the pending acquisition of Linx S.A., and to pay related fees and expenses, as well as for general corporate purposes. If for any reason the acquisition of Linx S.A. is not consummated, Stone intends to use the net proceeds from the offering of the shares for general corporate purposes.

J.P. Morgan Securities LLC, Morgan Stanley and Citigroup Global Markets Inc. are acting as Global Coordinators in this offering.

The public offering will be made pursuant to an automatically effective registration statement on Form F-3 that has been filed with the SEC. A prospectus supplement and accompanying base prospectus relating to and describing the final terms of the offering will be available on the SEC’s website located at www.sec.gov or from  J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone: 1-866-803-9204; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; or Citigroup Global Markets Inc., c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, or by phone at 1-800-831-9146.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Stone

We are a leading provider of financial technology solutions that empower merchants and integrated partners to conduct electronic commerce seamlessly across in-store, online, and mobile channels in Brazil.

Contact

Investor Relations

investors@stone.co

https://investors.stone.co/

FAQ

What is the purpose of StoneCo's public offering of $1.0 billion?

The public offering aims to finance the pending acquisition of Linx S.A. and cover related fees.

How much is StoneCo planning to raise in its public offering?

StoneCo is proposing to raise $1.0 billion, with a possible additional $150 million from underwriters.

What will happen if the acquisition of Linx S.A. is not completed?

If the acquisition does not proceed, StoneCo intends to use the proceeds for general corporate purposes.

Which financial institutions are coordinating StoneCo's offering?

J.P. Morgan Securities LLC, Morgan Stanley, and Citigroup Global Markets Inc. are the global coordinators.

What is StoneCo's stock symbol?

StoneCo is traded on the Nasdaq under the ticker symbol STNE.