PicPay will also hire advisors for a potential IPO in NY in 2025 (Image: Facebook/PicPay)
O PicPay will still hire financial advisors for a primary share offering (IPOits acronym in English) planned for next year in New York, two people familiar with the matter told Reuters.
Despite not having formally selected any member of the consortium, the digital bank intends to hire Citigroup, which has been involved in its IPO negotiations since 2021, as well as other banks, the sources said.
This is the second time that PicPay seeks to list its shares on the North American market. In 2021, the group made preparations for an IPO in Nasdaqbut withdrew the offer due to adverse market conditions.
PicPay and Citigroup declined to comment on the matter.
As before, PicPay intends to list its shares on Nasdaq, which has attracted IPOs from the technology sector for years with lower fees and simpler listing requirements.
The volume of shares to be sold in the offering has not yet been decided, but PicPay wants its IPO to be the “necessary” size, according to one of the sources, reinforcing that the completion of the operation depends on market conditions.
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The digital bank sees 2025 as a promising year for an IPO in New York, as the Federal Reserve has already started cutting fees nos USA and the North American presidential election will be behind us.
In addition to raising new funds, the IPO was designed to offer PicPay international visibility and access to a larger group of technology investors, the sources said. The cash raised from the IPO will help expand operations in Brazil, the sources said.
Headquartered in São Paulo, the company was founded in 2012 and purchased three years later by the J&F holding, which also controls businesses in other segments, such as food with JBS (JBSS3), energy with Âmbar, paper and cellulose with Eldorado and consumer goods with Flora.
In the first half of 2024, PicPay's net profit totaled R$61.8 million, a jump compared to the profit of R$2.5 million a year before and almost double the 2023 result, in a performance marked by expressive growth revenue and increased profitability.