Desktop’s R$715.2 Million Initial Public Offering

Simpson Thacher and Pinheiro Neto represented Desktop, while Davis Polk and Lefosse advised the joint bookrunners in the offering.

Desktop – Sigmanet Comunicação Multimidia S.A. (“Desktop”) executed its initial public offering on the São Paulo Stock Exchange (B3) at a public offering price of R$23.50 per common share. The offering raised R$715.2 million in gross proceeds (excluding the underwriters’ over-allotment option) to Desktop.

The common shares were offered to certain qualified institutional buyers under Rule 144A in the United States and to non-U.S. persons outside the United States in reliance upon Regulation S. Desktop’s common shares began trading on the B3 under the ticker symbol “DESK3” on July 21, 2021.

Desktop is one of the largest internet service providers (“ISP”) platforms in Brazil and the largest ISP platform in the State of São Paulo (excluding the city of São Paulo), primarily operating in the market of broadband internet services with high-speed fiber optic technology directed to the individual customers. Desktop operates more than 16,500 km of proprietary fiber networks, with more than 321,000 active customers in 53 cities in the countryside of the State of São Paulo.

The Simpson Thacher team advising Desktop included Grenfel S. Calheiros (Picture), Luiz F. Noronha, Isabel de Carvalho e Silva and Fabiano Maia (Capital Markets); and Andrew Purcell and Dmitry Zelik (Tax).

In Brazil, Pinheiro Neto advised Desktop with Guilherme Sampaio Monteiro, Eduardo Paoliello,  João Vitor Crepaldi, Mateus Martins Camarotti, Nicole Jeronimo Leite Rocha and Thiemy Otsu Sogame.

The Davis Polk corporate team for Itau BBA, UBS, BTG Pactual and Bradesco included Maurice Blanco and Cesar Fischer. The tax team included Kiara L. Rankin and Dov Sussman.

In Brazil, Lefosse advised Banco Itaú BBA S.A., UBS Brasil Corretora de Câmbio, Títulos e Valores Mobiliários S.A., Banco BTG Pactual S.A. and Banco Bradesco BBI S.A. with Ricardo Prado, Vicente Gioielli, Luana Pereira and Beatriz Lavigne. Asistente legal Fernando Tavares Bertholdo.

Involved fees earner: Maurice Blanco – Davis Polk & Wardwell; Cesar Fischer – Davis Polk & Wardwell; Kiara Rankin – Davis Polk & Wardwell; Dov Sussman – Davis Polk & Wardwell; Vicente Gioielli – Lefosse; Beatriz Lavigne – Lefosse; Ricardo Prado – Lefosse; João Vitor de Araujo Crepaldi – Pinheiro Neto; Eduardo Paoliello Jr. – Pinheiro Neto; Guilherme Sampaio Monteiro – Pinheiro Neto; Grenfel Calheiros – Simpson Thacher & Bartlett; Isabel De Carvalho – Simpson Thacher & Bartlett; Luiz Noronha – Simpson Thacher & Bartlett; Andrew Purcell – Simpson Thacher & Bartlett; Dmitry Zelik – Simpson Thacher & Bartlett;

Law Firms: Davis Polk & Wardwell; Lefosse; Pinheiro Neto; Simpson Thacher & Bartlett;

Clients: Bradesco BBI; BTG Pactual; Desktop – Sigmanet Comunicação Multimidia; Itaú BBA USA Securities; UBS;