Neoway pushes IPO to 2020, focusing on USD 200m Series C to finance buys - CEO

25 May 2019 - 10:54 am UTC

By Max Gonzales in Sao Paulo

 

Neoway Business Solutions, a private equity-backed Brazil-based market intelligence software provider, plans to go public in the US in 2020, after closing a Series C round by late June to finance buys this year, said CEO Jaime De Paula.

 

The Florianopolis-based company sees going public as “more likely” in 2020, after changing its initial IPO plan for this year, De Paula said. Neoway decided instead to raise a Series C to finance acquisitions and its organic growth, the CEO said.

 

Neoway is already in Series C talks to raise between USD 150m-USD 200m. Proceeds will be spent on R&D and the hiring of salespeople and technical staff, De Paula said.

 

The company welcomes approaches from new investors with expertise to take Neoway to “a very qualified IPO,” De Paula said. With more acquisitions completed this year, Neoway will be better positioned to go public in 2020, the CEO added.

 

Neoway is already in talks with NASDAQ and NYSE, as it will make its IPO in the US market “for sure,” De Paula said. The company’s picture was displayed at NASDAQ’s building in New York’s Times Square, regarding the Digital Innovation Award granted to Neoway by Brazilian-American Chamber of Commerce (BrazilCham) on 14 May, the CEO noted.

 

The company is also considering listing on the Sao Paulo-based stock exchange B3, in order to trade its shares in the US and in Brazil, the CEO added, without setting a timeframe for a decision about Brazil. Neoway will hire banks as its IPO underwriters, but it has not set a timeframe yet, De Paula said.

 

Neoway’s Series C and current acquisition talks are being advised by some of the company’s financial sponsors, such as Palo Alto, California-based Accel Partners, Sao Paulo-based Monashees Capital, Namibia-based Pointbreak and Singapore-based Temasek, De Paula said.

 

The company also counts Durham, North Carolina-based QMS Capital, Rio de Janeiro-based Pollux Capital, New York-based Endeavor Catalyst and private investor Andrew Prozes as investors, as reported. It raised USD 75m in 2017 (USD 30m from Temasek, and USD 45m from QMS), according to Mergermarket data.

 

Neoway is also working with its internal M&A team, and CFO and IR director Andrew Campbell, a former M&A executive at Credit Suisse’s branch in Brazil, the CEO added.

 

Neoway reported revenues of BRL 160m (USD 40m) in 2018 and projects BRL 240m by year-end, according to De Paula. The latter figure includes the revenues from the impending acquisition, De Paula noted.

 

Write to: max.gonzales@acuris.com