Brazilian ISP Desktop Sigmanet is planning to stage an initial public offering (IPO), TeleTime reports. The Sao Paulo-based company sent the draft of its preliminary prospectus to the Securities and Exchange Commission of Brazil (Comissao de Valores Mobiliarios, CVM) on 20 May. The process will be managed by Itau BBA, UBS, BTG Pactual and Bradesco, while the company’s share capital is valued at BRL74.82 million (USD13.94 million). As per the report, Desktop’s largest shareholder is currently Makalu, an affiliate of HIG Capital, which holds 60% of the shares. The company intends to use the funds raised via the IPO to expand its networks and pursue mergers other providers.
As previously reported by TeleGeography’s CommsUpdate, in November 2020 HIG Latin America, the regional offshoot of Miami-based HIG Capital, completed the acquisition of DSN Participacoes (Desktop Sigmanet). The company was previously owned by its founder and CEO Denio Alves Lindo and his partners. According to the National Telecommunications Agency (Agencia Nacional de Telecomunicacoes, Anatel), Desktop accounted for a total of 255,076 broadband subscribers as of 31 March 2021, up from 142,724 one year earlier.
Earlier this month Santa Catarina-based Unifique – Brazil’s seventh largest ISP in terms of subscribers – filed its own IPO request with the CVM. Meanwhile, Brisanet – the country’s fifth largest broadband provider – is also said to be considering an offering.