In recent months, two movements have attracted attention in the Brazilian capital market: Fictor Alimentos announced the acquisition of the listed company Atompar (ATOM3) and REAG Investimentos acquired control of GetNinjas (NINJ3).
Typically, companies that want to go public resort to an initial public offering (IPO). However, these two companies took a less traditional – and more agile – route by opting for a Reverse IPO.
In this type of operation, a private company carries out an acquisition or merger with a company already listed on the stock exchange, using this structure to access the capital market without going through the process of a traditional IPO.
Although not very common in Brazil, the Reverse IPO can be a strategic alternative for listing. Among its main potential advantages are lower cost, listing agility and reduced exposure to market volatility.
In today's pill, we explore the two transactions that inaugurated this movement in Brazil, the main benefits and risks of this structure, and revisit cases of Reverse IPOs in the international market.
