By Carolina Mandl and Tatiana Bautzer
SAO PAULO (Reuters) - Brazilian lender Banco Daycoval SA is planning to launch an initial public offering in April, in a move that would re-list its shares on the Sao Paulo stock exchange three years after taking the company private, three sources with knowledge of the matter said.
The bank's Lebanese-born founders, Ibrahim and Sasson Dayan, and other family members have hired investment banking units of Itau Unibanco Holding SA, Banco BTG Pactual SA, Bank of America (NYSE:BAC) and Banco Santander (MC:SAN) Brasil SA to manage the IPO, the sources said.
The offering may raise between 3 billion and 4 billion reais ($956 million), two of the sources said. The bank, which lends to small and mid-sized companies as well as consumers, plans to issue new shares and raise money to boost its business. But the Dayan family also plans to sell existing shares, the sources said.
Daycoval and the investment banks did not immediately respond to requests for comment.
The plan comes after the Dayan family decided to delist the bank in late 2016, after the shares slid to roughly half the value of the first initial public offering in 2007. The family paid 9.08 reais a share to take the bank private, a steep discount to its debut price in 2007 of 17 reais a share.
Now the family is counting on a recovering Brazilian economy and high valuations for a series of financial startups to boost the shares' value in the second IPO, the sources said.
Daycoval will join a wave of Brazilian financial institutions that are listing their shares, such as broker XP Inc (O:XP), which made its debut on Nasdaq in December and is valued at more than $22 billion.
Other financial newcomers planning to list their shares this year amid an ongoing stock market rally include retail lender Banco Votorantim and insurer Caixa Seguridade.
Focused on both consumers and small- and mid-sized companies, Daycoval has roughly 32 billion reais in assets. It posted a net income of 647 million reais in the first nine months of 2019 and a return on equity of 24.6%.