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

Rhea-AI Summary

StoneCo Ltd. (NASDAQ:STNE) announced a follow-on offering of 27,375,000 Class A common shares priced at $47.50 each, set to close on August 17, 2020. The company has granted underwriters a 30-day option to purchase an additional 4,106,250 shares. Proceeds from the offering will primarily finance the acquisition of Linx S.A. and cover related fees, with any remaining funds allocated for general corporate purposes. Major firms like J.P. Morgan and Morgan Stanley are coordinating this offering.

Positive

• Successful pricing of 27,375,000 shares at $47.50, indicating strong market interest.
• Funds will finance the strategic acquisition of Linx S.A., potentially enhancing growth.

Negative

• Share dilution risk due to the follow-on offering of 27,375,000 shares.
• Reliance on acquisition success; if Linx S.A. is not acquired, funds will only serve general purposes.

GEORGE TOWN, Grand Cayman, Aug. 13, 2020 (GLOBE NEWSWIRE) -- StoneCo Ltd. (NASDAQ:STNE) (“Stone”) today announced the pricing on August 12, 2020 of a follow-on offering of 27,375,000 of its Class A common shares at a public offering price of $47.50 per share. The shares are being offered by Stone pursuant to an effective shelf registration statement on file with the Securities and Exchange Commission (the “SEC”).  The offering is expected to close on August 17, 2020. In connection with the offering, Stone has granted the underwriters a 30-day option to purchase up to an additional 4,106,250 Class A common shares at the public offering price less the underwriting discount.

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, Citigroup Global Markets Inc. and XP Investments US, LLC are acting as Global Coordinators in this offering.

The public offering is being 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 or email at prospectus-eq_fi@jpmchase.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014; 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; or XP Investments US, LLC, 55 West 46^th Street, 30^th Floor, New York, New York 10036, telephone: 1-786-732-1100.

This announcement does not, and is not intended to, constitute an offer to sell or a solicitation of an offer to purchase any securities in the United States or elsewhere, and it does not, and is not intended to, constitute an offer, solicitation or sale of any securities in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.

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 share pricing for StoneCo Ltd.'s offering?

The shares are priced at $47.50 each.

When is the expected closing date for StoneCo Ltd.'s offering?

The offering is expected to close on August 17, 2020.

How many shares is StoneCo Ltd. offering in the follow-on offering?

StoneCo is offering 27,375,000 Class A common shares.

What will the proceeds from StoneCo Ltd.'s offering be used for?

Proceeds will finance the acquisition of Linx S.A. and cover related fees.

Who are the underwriters for StoneCo Ltd.'s follow-on offering?

J.P. Morgan, Morgan Stanley, Citigroup, and XP Investments are the underwriters.