By Brazil Stock Guide – Oncoclínicas do Brasil Serviços Médicos S.A. (B3: ONCO3) said it is considering a private capital increase through a share subscription, aiming to strengthen its balance sheet and improve financial indicators. The plan was disclosed in a material fact on late Tuesday, September 9.
The company said the potential deal could involve cash contributions or the conversion of credits held against the group and its subsidiaries, including bank loans, debentures and commercial notes. Oncoclínicas is also weighing the issuance of warrants to existing shareholders to preserve their preemptive rights.
To structure the possible transaction, the company has hired Rothschild & Co Brasil as financial advisor and Pinheiro Neto Advogados as legal counsel. It stressed that no decision has yet been taken and that execution will depend on corporate approvals, market conditions in Brazil and abroad, and investor appetite.
Track record of cash calls
This would not be the company’s first capital raise. Since its IPO in 2021, which brought in about R$2.6 billion, Oncoclínicas has repeatedly tapped investors. In 2023 it carried out a follow-on of roughly R$900 million, and in May 2024 it approved a R$1.5 billion private capital increase, of which Banco Master contributed R$1 billion.
The new move comes as liquidity deteriorates and debt pressures mount. More than R$2.5 billion falls due between 2025 and 2027, while working capital has consumed an average 77% of EBITDA over the past three years — 130% including interest. Fitch has already downgraded the company, and ONCO3 shares have lost 80% since listing on the B3.
Shareholder implications
The possible use of warrants suggests an effort to ease dilution for current investors, who have already endured heavy losses from previous capital raises. Banco Master, which holds 15% of the company, adds another layer of uncertainty after Brazil’s Central Bank recently blocked the bank’s planned sale to Banco de Brasília (BRB).
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