IPO raises USD505 million to fund GVT’s network expansion

5 Mar 2007

Global Village Telecom (GVT) says its IPO raised BRL1.08 billion (USD505 million), the proceeds of which will be used to fund the expansion of its next-generation network (NGN) and pay long-term debt and bank loans. GVT, which offers fixed line and wireless telephony, internet access and some multimedia services, becomes the first Brazilian telecoms operator to list on São Paulo Bovespa’s Novo Mercado stock exchange. The company launched the IPO on 15 February and it closed on 1 March; it had hoped to raise at least BRL554 million in the placement.

GVT operates in 62 cities in Brazil’s central-southern region and in parts of the northern region. It also provides services in the cities of São Paulo, Rio de Janeiro and Belo Horizonte, where it serves the corporate market and provides internet services.

Brazil, Global Village Telecom (GVT)