Brazil Telecom Surf Group Is Planning an IPO

Brazilian mobile network operator Surf is planning an initial public offering, according to people with knowledge of the matter.

The Sao Paulo-based company is weighing a listing in the U.S. or Brazil, and has asked investment banks to pitch for a role in the offering, said the people, who asked not to be identified because the information is private. A target for the size of the IPO hasn’t been set yet, the people said.

The exact timing of the offering couldn’t be learned. The discussions are early and the company’s plans could still change, they said.

A representative for Surf declined to comment.

Founded by former Brasil Telecom executive Yon Moreira da Silva Jr., Surf uses the networks of bigger wireless companies to provide a virtual network for its customers. It also operates a financial services business that provides digital bank accounts, credit cards and loans, according to its website.

The company’s partners include retailer Magazine Luiza SA, financial technology firm Banco Inter SA and Brazil’s post office, known as Correios, according to its website.

Brazilian companies raised 19.7 billion reais ($4.78 billion) in IPOs during the past year. XP Inc., Brazil’s largest brokerage by equity-trading volume, raised $2.25 billion including so-called greenshoe shares in a Nasdaq listing in December, the fourth-largest U.S. listing of 2019.

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