, Owner of Smart Fit, Sees Wealth Soar as Company’s Stocks Surge
Edgard Corona, the CEO and majority owner of the fitness
chain Smart Fit, has witnessed a significant increase in his wealth as the
company’s stocks soared. The highly anticipate d initial public offering (IPO)
of Smart Fit on the Brazilian stock exchange witnessed a 35% surge in the
company’s shares, closing at R$ 31.00. With the IPO raising a staggering R$ 2.3
billion, Corona’s estimated fortune now stands at approximately R$ 1.6 billion,
according to Forbes.
As the offering included 100 million shares, Corona’s
ownership stake was diluted to 9.07%. However, it is important to note that he
did not sell any of his shares and remains the majority owner of the company,
holding over 51 million ordinary shares of Smart Fit . Before the IPO, his stake
amounted to 11%.
The pricing of Smart Fit’s shares exceeded the midpoint of
the indicative price range disclosed in the prospectus, which was R$ 22.50. The
demand for the company’s shares outstripped the volume offered by a staggering
factor of 20. Itaú BBA, Morgan Stanley, Santander Br asil, BTG Pactual, and ABC
Brasil coordinated the IPO.
Smart Fit’s IPO has been in the pipeline since December 2018
when the company expressed its intention to go public on the Novo Mercado, the
highest level of corporate governance on the B3. In that same year, the company
refrained from proceeding with the offer in hopes of achieving a better
valuation in the future.
The billions raised from this week’s IPO are expected to
support Smart Fit’s organic growth and acquisitions, as stated in a document
submitted to the Brazilian Securities and Exchange Commission (CVM).
The remarkable success of Smart Fit’s IPO has undoubtedly
propelled Edgard Corona’s wealth to new heights. As the fitness giant continues
to thrive, Corona’s financial position stands as a testament to his
entrepreneurial prowess and the booming popularity of fitness and wellbeing
industries.
In the fast-paced world of finance, Smart Fit’s IPO
highlights the allure and potential for significant gains that can be attained
by visionary leaders like Edgard Corona who possess a deep understanding of the
market and the confidence to seize opportunities. As the fitness industry
continues to evolve and grow, it will be fascinating to witness how Corona’s
leadership and Smart Fit’s innovative approach shape the future of fitness
worldwide.