Intercorp Financial Services IPO: What You Need To Know

A South American financial conglomerate is part of the IPO slate of the week.

The IPO Terms

Peru-based Intercorp Financial Services Inc. proposes to offer 9 million shares in an IPO, with the company along with its banking subsidiary offering 3.57 million shares, according to the amended preliminary prospectus.

About 5.43 million shares will be sold by selling shareholders.

The company said it expects to price the offering between $44 and $50 per share.

At the mid-point of the estimated price range, the size of the IPO is $423 million. Intercorp has applied for listing its shares on the NYSE under the ticker symbol IFS.

Bank of America Merrill Lynch and JPMorgan are the joint bookrunners for the offering.

The Company

Intercorp is a provider of banking, insurance and wealth management services for retail customers and commercial clients in Peru. It boasts of an integrated financial services platform as well as a scalable digital platform, with mobile and online applications, that is complemented by distribution platforms such as financial stores, ATMs, correspondent agents, dedicated sales forces, financial advisors and call centers.

It currently has about three million customers, with the potential to add up to 30 million Peruvians and 9 million businesses.

The Finances

Intercorp reported net interest and similar income after impairment of $194.8 million for the three months ended March 31, an 8% year-over-year increase. Other income also rose modestly to $109.1 million. Total net premiums earned minus claims and benefits were a negative $22.3 million.

The net profit increased 21.6% to $106.3 million.

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