Market Overview

Linx IPO: What You Need To Know

Linx IPO: What You Need To Know

The Brazilian economy is teetering, and the global macroeconomic conditions are not quite enthusing. Yet investors who are willing to make a bold bet can keep an eye on this Brazilian company that provides software solutions to retailers.

The IPO Terms

Sao Paulo, Brazil-based Linx S.A. (NYSE: LINX) filed with the SEC for offering 29.275 million common shares, including in the form of American Depository Share, or ADSs. Each ADS corresponds to a common share.

The company noted in its IPO filing that the closing price of its common shares June 12 at the Brazilian exchange was equivalent to $8.68, and giving effect to the 1:1 ratio of the common share and ADS, each ADS is to be priced at $8.68, rendering the size of the offering at $254 million.

Since the company qualifies as an "emerging growth company" under the U.S. federal securities laws, it is subject to reduced public company reporting requirements.

Goldman Sachs, Morgan Stanley, Jefferies, BofA Merrill Lynch and Itau BBA are the underwriters for the offering.

The company has applied for listing its shares on the NYSE under the ticker symbol LINX.

The Company

Founded in 1985, Linx is a cloud-based Latin American technology company, which develops affordable and seamlessly integrated software solutions to retailers in Latin America through a software-as-a-service, or SaaS model.

The company has three product lines – Linx Core, which provides integrated business management system, Linx Digital, which provides machine-learning technology, data analytics and order management system, and Linx Pay Hub, which provides payment solutions.

The Finances

Linx' net operating revenues rose 20% year-over-year to $175.9 million in fiscal year 2018. The metric climbed about 12% in the quarter ended March 2019 to $45.4 million.

The company reported net income of $18.2 million for 2018 and $4.4 million for the March quarter.

In 2018, subscription revenues accounted for 86.8% of its total revenues. The number of customers was at 46,197 at the end of the March quarter, with the customer retention rate at 99.2%.

Related Links:

IPO Outlook For The Week: Biotech, Real Estate, IT Solutions And Secondhand Luxury E-Tail

Personalis IPO: What You Need To Know

Posted-In: Bank of America BBA brazilNews Previews IPOs Tech Trading Ideas Best of Benzinga


Related Articles (LINX)

View Comments and Join the Discussion!
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at