(Bloomberg) -- Brazilian payments processor PagSeguro Digital Ltd. sharply fell on Tuesday after announcing its parent company Universo Online SA will sell shares for the second time in 16 months.

PagSeguro is controlled by Brazilian billionaire Luiz Frias through his majority holding in Universo Online, known as UOL. UOL will offer 16.8 million shares via Goldman Sachs and Morgan Stanley, according to a filing.

Shares of the Brazilian fintech firm fell as much as 20% to $37.15 in early trading in New York in the biggest intraday move since the stock went public in January 2018.

“Some investors are anxious about the ongoing relationship between parent UOL and PAGS in part because of the intra-corporate operating agreement between the two entities that includes Marketing on the UOL platform,” Susquehanna analysts led by James Friedman wrote in a note. “But note that after the secondary, UOL will still own 45.3% of outstanding shares” assuming no exercise of the underwriters’ option to purchase additional shares, the analysts said.

PagSeguro became the crown jewel of the Frias family empire after its $2.3 billion initial public offering, making Luis Frias a billionaire. The family also owns Brazil’s most popular newspaper Folha de Sao Paulo. Since the IPO, the stock has gained 81%.

On Tuesday, PagSeguro also said its preliminary third-quarter net income totaled between 330 million and 340 million reais.

--With assistance from Felipe Marques and Joshua Fineman.

To contact the reporters on this story: Vinícius Andrade in São Paulo at vandrade3@bloomberg.net;Drew Singer in New York at dsinger28@bloomberg.net

To contact the editors responsible for this story: Brad Olesen at bolesen3@bloomberg.net, Jennifer Bissell-Linsk

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