Magalu will invest in logistics with funds raised in follow-on

The company announced the issuance of 150 million new shares and the acquisition of KaBuM!

On Thursday (15), Magalu stimulated the financial market with two strategic announcements for the company. The first of them is to carry out a follow-on, in which the retailer will issue 150 million new shares.

The funds raised will be destined for Magalu's expansion into new markets, investments in logistics, opening new distribution centres and hubs, and the payment of strategic acquisitions.

According to data from SiiLA Brasil, Magalu leased 184,380 square metres in logistics condominiums in the last 12 months, of which 133,582 were leased by the company only in the second quarter of 2021, in Jundiaí and Barueri (SP), Gravataí (RS), Araucária (PR) and Contagem (MG). The company should also lease 120 square metres of a logistics warehouse in Guarulhos, which is expected to be delivered later this year.

The other innovation is the acquisition of 100% of KaBuM!, the largest technology and games e-commerce platform in the country. "With the purchase of KaBuM!, we consolidated ourselves as one of the leaders in Brazilian e-commerce and reinforced our presence in one of the fastest-growing markets in the world in products for geeks and gamers", says Frederico Trajano, CEO of Magalu.

Appetite for acquisitions

In a year and a half, Magalu has acquired 21 companies, and the acquisition operation of KaBuM! is the biggest one. The company, created in 2003, in Limeira, in the interior of São Paulo, has a business model that combines accelerated growth and high profitability. In the last 12 months, it had gross revenue of 3.4 billion reais and a profit of 312 million reais.

"This level of profitability shown by Kabum is not common in e-commerce players, which shows the company's management's efficiency, " says Trajano. "This shows that the company is very much in line with Magalu's philosophy, which also presents stimulated growth with sustainable results."