Shareholders of Brazil's Cetip raised 881.4 million reais ($508.01 million) in an initial public offering on Monday, underscoring a strong rebound in the country's capital markets and demand for emerging market stocks.

The company, formally known as Cetip SA Balcao Organizado de Ativos e Derivativos, said its shareholders sold 67.8 million common shares at 13 reais each, at the low end of the expected range.

Cetip's IPO was the third biggest in the country this year, behind Santander Brasil's record 14.1 billion reais on Oct. 7 and VisaNet's 8.4 billion reais in June.

Brazil's stock market has seen a flurry of activity this year, with 42.35 billion reais in share sales, including 24.08 billion reais in IPOs.

Most of the sales have occurred since late June when expectations of a rebound in global growth stoked appetite for riskier investments in emerging market stocks.

Seven more companies have filed to sell stock in the coming weeks in Brazil; four of them IPOs.

Cetip, Latin America's largest clearing house, was founded in 1986 as a venture between Brazil's central bank and private-sector financial firms. It has 2.7 trillion reais in more than 50 different asset classes under custody.

The company, which clears transactions involving fixed income securities and over-the-counter derivatives, sold a 30 percent stake to private equity firm Advent International for 360 million reais in May. The fund later increased its stake to 31.93 percent.

Advent was the biggest shareholder divesting its stake as part of the Cetip IPO. Other top holders selling their stakes included Banco Santander Brasil and Bradesco, according to the prospectus.

ItauBBA, the investment banking unit of Brazil's largest private sector bank Itau Unibanco, was the lead underwriter of Cetip's share sale.

($1=1.735) (Reporting by Ana Nicolaci da Costa, Writing by Elzio Barreto)