The details of the digital bank’s expected share offering PicPay already Nasdaq were formally announced this Tuesday (20), in a document to United States regulators.
The fintech is expected to list on the American stock exchange on the 29th, in an offer that could raise between US$2.2 billion and US$2.6 billion, depending on the price at which it is in the proposed range.
The share price range signaled to investors is from US$16 to US$19. The price will be defined next week, on the 28th. Presentations for investors (roadshows) begin this Tuesday (20th), in New York.
PicPay’s funding could be US$400 million if the price is in the center of the range or US$500 million if it is at the top of the range.
The offering will be 26.3 million shares, around 21% of the company. With this, J&F Participações, owned by brothers Joesley and Wesley Batista, will continue to control PicPay.
As already announced in the first prospectus, on the 5th, which did not yet have numbers and prices, the operation is already anchored, that is, with a firm purchase order, with US$75 million from the Bycicle fund, owned by Marcelo Claure, former Softbank manager and who also invested in Nubank and Inter.
Claure, in fact, is at the World Economic Forum this week.
The operation, the first Brazilian IPO in New York since Nubank in December 2021, is led by Citi and Bank of America.
In addition to PicPay, Agibank also filed, last week, a request to go public in the United States, after having signed an agreement with the INSS that allowed the resumption of granting payroll loans to Social Security beneficiaries. The digital bank plans to trade shares on the New York Stock Exchange.
In 2021, PicPay had already submitted an IPO application to the SEC, but successively postponed the process amid uncertainties about governance. In the most recent prospectus, the fintech admits to facing reputational risks due to multiple criminal and civil investigations involving the Batista brothers.
The company claims to comply with the obligations set out in court, but recognizes that any new accusations or lawsuits could “materially” harm the business strategy, the ability to carry out new transactions and the value of PicPay’s shares.
Sports
The prospectus also revealed the fintech’s plans to enter the sports betting market. According to the document, the subsidiary Nosso Time iGaming Ltda filed a request to open a Bet, which is being analyzed by the SPA (Secretariat of Prizes and Bets), of the Ministry of Finance.
“We believe that this market offers us an opportunity to generate significant financial returns, driven mainly by digital platforms focused on sporting events, while also being an important source of tax revenue and economic development,” says the prospectus.
