SAO PAULO, Sept 21 (Reuters) - Brazil’s second-largest private-sector lender Banco Bradesco SA is considering a spinoff and listing of its broker unit Agora, Goldman Sachs’ analysts said in a note to clients.
“Bradesco’s plan is to raise capital with the intention to support Agora’s investments in human resources, marketing, horizontal M&A, and corporate governance in order to prepare for an eventual IPO,” the analysts wrote, adding the plans were unveiled by the bank’s investor relations executives in a video conference.
Leandro Miranda, Bradesco’s investor relations officer, said an IPO will occur within 4-5 years, while the spinoff would happen by year-end.
Agora has 500,000 clients and 65 billion reais ($12.05 billion) under management, but is expected to reach 200 billion reais as Bradesco plans to bring some of its private banking, asset management and custody deposits.
Currently, Brazil’s only listed broker is XP Inc, which has a market capitalization of nearly $24 billion on Nasdaq, with 436 billion reais in assets under custody.
$1 = 5.3964 reais Reporting by Carolina Mandl; Editing by Bernadette Baum
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