PicPay, a prominent Brazilian digital bank, is organizing an initial public offering (IPO) on the Nasdaq exchange in 2025. This upcoming IPO represents PicPay’s renewed effort to enter the US market, following a plan previously postponed in 2021 due to conditions unfavorable market conditions. Based in São Paulo and owned by the J&F group, the fintech is preparing to hire financial firms to help it with the IPO process. Although no banks have been officially selected yet, Citigroup is expected to play a major role, having been involved in the discussions since 2021.
Opting for a Nasdaq listing aligns with the exchange’s strong reputation for technology sector initial public offerings, which offer lower fees and more flexible listing criteria compared to other major exchanges. PicPay is looking to not only raise capital, but also raise its international profile and attract a broader range of technology-focused investors. Funds generated from the sale of shares are anticipated to support the company’s expansion in Brazil.
Founded in 2012 and acquired by J&F in 2015, PicPay has experienced substantial growth, benefiting from Brazilian central bank initiatives that promote competition in the retail banking sector. At the end of the second quarter of 2024, the company reported net income of 61.8 million reais (approximately $11.3 million), almost doubling its total income for the full year of 2023.
The timing of the IPO in 2025 is strategic, with expectations that the Federal Reserve has implemented interest rate cuts and the US presidential election has concluded, which could foster a more stable economic environment. Although the precise scale of the offering is yet to be decided, PicPay seeks to keep it “only as large as necessary”, reflecting a cautious approach to its market entry strategy. The move also highlights a growing trend of emerging market companies seeking to access global capital through U.S. stock exchanges.
