EVERTEC Inc. announced Thursday it has priced its shares at $20 for an initial public offering through which it could raise about $500 million for up to 25.2 million shares for going public.
The transaction processing company is putting up 6.2 million of the shares, while company stockholders Apollo Global Management and Popular Inc. will sell a combined 19 million shares. While Apollo will offer 10.2 million, minority owner Popular Inc. is looking to unload 8.8 million shares.
The shares are expected to begin trading on the New York Stock Exchange today under the symbol “EVTC.” The offering is expected to close on or about April 17, 2013, subject to customary closing conditions.
In a statement issued Thursday, Evertec said it expects to garner $117.4 million from the 6.25 million it is offering, after discounts and commissions. It intends to use a substantial portion of the net proceeds of the offering to repay existing indebtedness. EVERTEC will not receive any proceeds from the sale of shares by selling stockholders.
IPO underwriters will have a 30-day option to buy up to an additional 3.7 million shares of common stock from Apollo at the initial public offering price, minus underwriting discounts and commissions.
After the IPO, Apollo and Popular will own 33.6 percent and 33.5 percent, respectively, of Evertec’s oustanding shares. However, if the underwriters’ 30-day option is exercised in full, then Apollo will retain 28.8 percent ownership and Popular will hold on to 33.5 percent.
Goldman, Sachs & Co., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Deutsche Bank Securities Inc., BofA Merrill Lynch, Credit Suisse Securities (USA) LLC and UBS Securities LLC are acting as joint bookrunners for the offering.
William Blair, Apollo Global Securities, LLC and Popular Securities, Inc. are acting as co-managers of the offering.