Brazil personal care firm MPM announces capital increase of up to $44 million

SAO PAULO (Reuters) – Brazilian personal care services provider MPM Corporeos SA, popularly known for its Espacolaser depilation brand, announced late on Tuesday a new capital increase to raise up to 225 million reais ($43.92 million).

MPM said in a securities filing it will sell a maximum 117,187,500 new common shares for 1.92 real each, which represents a 20% discount over Tuesday’s closing price of 2.40 reais per share.

The move is aimed at strengthening the company’s capital structure, improving its cash position and lowering its financial leverage, MPM said.

Shares in MPM Corporeos are down roughly 71% so far this year, which gives the company a current market capitalization of 597.14 million reais, according to Refinitiv data.

Since its February 2021 initial public offering (IPO), which was priced at 17.90 reais per share and reached a total 2.3 billion reais, MPM shares have dropped by 87%.

($1 = 5.1230 reais)

(Reporting by Gabriel Araujo; Editing by Steven Grattan and Louise Heavens)

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