Should You Invest at Vivara (VIVA3)?

VIVARA IR
VIVARA History

VIVARA’s IPO

These will be a mixed IPO, i.e. it will have both a primary offering and a secondary offering.

Why VIVARA need the IPO?

Considering the average price of the indicative range of R$ 23.29, the company will debut with a market value of R$ 5.5 billion.

  1. Opening of new stores (65%),
  2. Expansion of the manufacturing park (15%),
  3. Launch of a new brand (12.5%) and
  4. Investment in technology and innovation (7.5%).

Valuation

Vivara’s valuation is being considered higher than Tiffany’s market value. Tiffany is one of the most valuable jewelry brands in the world, with a much more extensive history and market consolidation in the US than the Brazilian.

Price / Net Revenue
  1. Most of the trading volume will not go to the company’s cash for new investments, but the founding shareholders.
  2. High Valuation.

Market

Vivara has products ranging from R$ 50 toR $ 5000, i.e., from the small gift to a piece of jewelry. This price positioning allows Vivara to compete, for example, for the small gift market like a premium chocolate box.

Conclusion

It is hard to believe that the Brazilian market will react quickly in the next 18–24 months to justify the need for so many new store expansion across Brazil for the next five years.

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Taric Andrade

Entrepreneurial minded, passionate for tech, driven by intellectual curiosity — curating knowledge to solve problems and create change.