TLDR:
- PicPay, a Brazilian digital bank, plans to list on Nasdaq in 2025
- This will be PicPay’s second attempt at a US IPO after a 2021 plan was dropped
- Citigroup is expected to be among the banks hired for the IPO
- The IPO aims to increase international visibility and access to tech investors
- PicPay’s net income in H1 2024 was 61.8 million reais, nearly double its 2023 total
PicPay, a prominent Brazilian digital bank, is gearing up for an initial public offering (IPO) on the Nasdaq stock exchange in 2025. This move marks the company’s second attempt at a U.S. listing, following a postponed plan in 2021 due to unfavorable market conditions.
The São Paulo-based fintech, owned by the J&F holding group, is preparing to engage financial firms to facilitate the IPO process. While no official selections have been made, sources familiar with the matter indicate that Citigroup is likely to be among the chosen banks, given its involvement in PicPay’s IPO discussions since 2021.
PicPay’s decision to list on Nasdaq is strategic, aligning with the exchange’s reputation for attracting technology sector IPOs. Nasdaq’s appeal lies in its lower fees and more flexible listing requirements compared to other major exchanges.
The primary goal of the IPO extends beyond raising capital. PicPay aims to enhance its international visibility and gain access to a broader pool of technology-focused investors. Any funds raised through the share sale are expected to be channeled into expanding the company’s operations within Brazil.
Founded in 2012 and acquired by J&F in 2015, PicPay has experienced rapid growth in recent years. This expansion has been partly fueled by the Brazilian central bank’s efforts to foster competition in retail banking through new technologies. These initiatives have created a favorable environment for challenger banks like PicPay to thrive.
The company’s financial performance reflects this growth trajectory. At the end of the second quarter of 2024, PicPay reported a net income of 61.8 million reais (approximately $11.3 million) for the first half of the year. This figure represents nearly double the company’s total net income for the entire year of 2023, highlighting its strong financial progress.
The timing of the planned IPO in 2025 is not arbitrary. PicPay views it as a promising year for a New York listing, considering several factors. By then, the Federal Reserve is expected to have initiated interest rate cuts, and the U.S. presidential election will have concluded, potentially creating a more stable economic environment.
While the exact size of the share sale has not been determined, sources suggest that PicPay intends to keep the IPO “only as big as necessary.” This approach indicates a cautious strategy, with the company remaining flexible to adjust the timing and value of the offering based on prevailing market conditions.
PicPay’s pursuit of a Nasdaq listing aligns with a broader trend of emerging market companies seeking access to global investors through U.S. exchanges.
