Eleva Educação SA, a Brazilian school group, is in talks with investment banks in the US and Brazil to manage an initial public offering that would raise 1.5 billion reais ($272 million), it has been reported.

The Rio de Janeiro-based business, which owns 130 schools with 80,000 students across 11 Brazilian states, has mandated Morgan Stanley, Goldman Sachs and the investment banking unit of Itau Unibanco Holdings to look into arranging the IPO, Reuters reported.

Billionaire Jorge Paulo Lemann, a founding partner at 3G Capital, owns a stake in Eleva, which has also been backed by US private equity firm Warburg Pincus, which holds a minority stake in the business.

The IPO would raise new capital to allow the company to expand further, it was reported. A source told Reuters that the business has decided to explore an IPO given a recent boom in deals in Brazil, but has yet to make a final decision on whether to pursue it.

If the company goes ahead with the plans, the transaction is expected to take place later this year, according to Bloomberg, which cited sources familiar with the matter. 

According to data compiled by Bloomberg, Brazilian companies raised 25.5 billion reais in IPOs over the past year.

Earlier this year, Brazilian for-profit education firm Cogna Educacao SA set an estimated price range for the US initial public offering of its subsidiary Vasta Platform, which sells digital solutions to private schools.

Date published: 20 August 2020

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