Afya IPO: What You Need To Know

A Brazilian medical education company is tapping the IPO market this week.

The IPO Terms

Afya has filed to offer 13.74 million Class A common shares in an IPO, with 11.83 million shares to be sold by the company and the remaining 1.92 million shares by selling shareholders, according to the F-1/A filing with the SEC dated July 9.

The common shares are to be priced between $16 and $18.

At the mid-point of the estimated price range, the size of the offering is $233.58 million.

The company has applied for listing the shares on the Nasdaq under the symbol AFYA.

Bank of America Merrill Lynch, Goldman Sachs, UBS and Itau BBA are the global coordinators for the offering.

The Company

Afya is a medical education company, delivering an end-to-end physician-centric ecosystem serving medical students through their medical residency preparation, graduation program and continuing medical education activities.

Citing data published by the Brazilian Ministry of Education, the company said it is the leading medical education group in Brazil. Its undergraduate and graduate campuses are spread across 12 Brazilian states and its digital medical platform is available across Brazil.

As of March 31, Afya had 14 undergraduate and graduate medical school campuses consisting of nine operating units.

The Financials

Afya reported net revenues of $85.7 million for the fiscal year 2018, up about 55% year-over-year. On a pro forma basis, net revenues came in at $140.5 million. The net income for the year was $24.3 million.

For the three months ended March 31, the company reported net revenues of $37.1 million, a 136% increase.

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