Vinci Partners, the Brazil-based asset management company plans to raise $236 million by offering 13.9 million shares in its initial public offering (IPO).
- Detailed instructions how to participate in Vinci Partners IPO (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (J.P. Morgan, Goldman Sachs & Co. LLC and BTG Pactual in Vinci Partners case) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company sets an initial price and date for the stock to begin trading on a stock exchange.
About Vinci Partners, financial indicators
Vinci Partners, a Brazil based investment company, is launching its IPO in the NASDAQ on January 27. Vinci is focused on pre-IPO and M&A consulting, while its business includes sourcing and managing client investments in the stock market, real estate, loans, infrastructure, hedge funds, and other investment products. As of September 30, 2020, Vinci Partners managed assets worth $8.70B.
Vinci Partners Investments timed its IPO very well, as people in Brazil are currently moving their savings from government bonds to riskier assets in order to boost their yields. The base rate is currently below 2%, which is incredibly low in comparison with other countries. According to the Brazilian Association for Financial and Capital Markets, Brazil's asset management industry was worth $1.13T last year, which means Vinci services are in high demand in Brazil, and this is a good sign for investors.
How to Buy Vinci Partners Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Vinci Partners IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Vinci Partners shares when the company goes public via a commission-free trading app like eToro.
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees.
🚨 Detailed Instructions How to Participate in the Vinci Partners IPO before public trading:
Below we share the instruction how to participate in the approaching Vinci Partners IPO using Freedom Finance (Tradernet platform). This marketplace is chosen as an example because Vinci Partners is already listed there and available for participation.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- Submit a request to participate in the IPO — select Vinci Partners and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start— a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 52%, past IPOs data.
When is the Vinci Partners IPO date?
Vinci Partners IPO date is January 26, 2021
What is Vinci Partners IPO price range?
$16.00 to $18.00 per class A common share.
How to Invest in Vinci Partners after the IPO date (opening price)?
After the IPO you can buy Vinci Partners stocks via a trading app like eToro on the first trading day.
What is the ticker (stock symbol)
The stock ticker for Vinci Partners will be VINP