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Sept. 17, 2020, 7:35 a.m. EDT

Vitru downsizes IPO as expected price range gets cut

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By Tomi Kilgore

Vitru Ltd. /zigman2/quotes/220991531/composite VTRU -2.72% disclosed Thursday that its downsized initial public offering is now expected to price between $16 and $18 a share, down from previous expectations of $22 to $24 a share. The Brazil-based distance-learning education company reduced the number of shares it was offering in the IPO to 6 million shares from 11.23 million, as the expected amount it will raise has been lowered to up to $108.0 million from $269.5 million. With 23.06 million shares outstanding after the IPO, the company could be valued at up to $415.04 million, down from previous expectations of up to $553.39 million. The stock is expected to list on the Nasdaq under the ticker symbol "VTRU." There are nine banks underwriting the deal, led by Goldman Sachs. Vitru recorded net income of R$52.4 million ($9.6 million) on revenue of R$256.7 million during the six months ended June 30, after a net loss of $25.1 million on revenue of R$234.5 million in the year-ago period. The downsized IPO and pricing expectations comes during a good market for IPOs, as the Renaissance IPO ETF /zigman2/quotes/207665280/composite IPO -3.78% has soared 59.2% year to date, while the S&P 500 /zigman2/quotes/210599714/realtime SPX -1.21% has gained 4.8%.

/zigman2/quotes/220991531/composite
US : U.S.: Nasdaq
$ 11.45
-0.32 -2.72%
Volume: 8,971
Oct. 30, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$243.01 million
Rev. per Employee
N/A
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/zigman2/quotes/207665280/composite
US : U.S.: NYSE Arca
$ 50.68
-1.99 -3.78%
Volume: 478,004
Oct. 30, 2020 4:00p
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/zigman2/quotes/210599714/realtime
US : S&P US
3,269.96
-40.15 -1.21%
Volume: 3.01B
Oct. 30, 2020 5:18p
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