Brazilian ISP Desktop Sigmanet plans IPO

Brazilian ISP Desktop Sigmanet plans IPO

Brazilian Internet Service Provider (ISP) Desktop Sigmanet is planning to stage an initial public offering (IPO).

Founded in 1997, Desktop operates more than 14,000 km of its fibre optic networks, with more than 264,000 active users, in 37 cities in the interior of the State of São Paulo.

According to a press release, the company sent the draft of its preliminary prospectus to the Securities and Exchange Commission of Brazil (Comissao de Valores Mobiliarios, CVM) on 20 May.

The process will be managed by Itau BBA, UBS, BTG Pactual, and Bradesco, while the company’s share capital is valued at BRL74.82 million (USD13.94 million).

Desktop’s largest shareholder is currently Makalu, an affiliate of HIG Capital, which holds 60% of the shares. The company intends to use the funds raised via the IPO to expand its networks and pursue mergers with other providers.

According to HIG Capital, Desktop has been growing at a double-digit rate in the last few years and is positioned to serve as the platform for a roll-up strategy in the sector, benefiting from a largely underpenetrated and fragmented market.

For the past nine months, Desktop has gone buying spree. Last year, in August, the company purchased ISSO Internet e Telecomunicações, and in November, it acquired an equity interest in Neteller Internet. In March of this year, the São Paulo company also acquired a stake in Netion Soluções.


Sign-up to our weekly newsletter

Keep up-to-date with all the latest news, articles, event and product updates posted on Developing Telecoms.
Subscribe to our FREE weekly email newsletters for the latest telecom info in developing and emerging markets globally.
Sending occasional e-mail from 3rd parties about industry white papers, online and live events relevant to subscribers helps us fund this website and free weekly newsletter. We never sell your personal data. Click here to view our privacy policy.