This band formed in Recife (Pernambuco) in 1984, out of the remains of three deceased punk bands (Trapaça, Serviço Sujo, and Câmbio Negro). Mundo Livre S/A spent several years playing under massive booing, especially when they played the tamborim (a percussion instrument traditional in the samba genre). In 1987, the band's instruments were stolen, thus causing the dissolution of the group. Bandleader Fred 04, a journalist by profession, went to São Paulo and worked there for one year. Upon his return, the city was changing with the formation of an alternative audience for unorthodox acts like his.