This upcoming IPO represents PicPay’s renewed effort to enter the U.S. market, following a previously postponed plan in 2021 due to unfavorable market conditions. Based in São Paulo and owned by the J&F holding group, the fintech is preparing to enlist financial firms to assist with the IPO process. While no banks have been officially selected, Citigroup is expected to play a significant role, having been involved in discussions since 2021.
Opting for a Nasdaq listing aligns with the exchange’s strong reputation for technology sector IPOs, which offer lower fees and more flexible listing criteria compared to other major exchanges. PicPay aims not only to raise capital but also to increase its international profile and attract a wider range of technology-focused investors. The funds generated from the share sale are anticipated to support the company’s expansion within Brazil.
Founded in 2012 and acquired by J&F in 2015, PicPay has seen substantial growth, benefiting from Brazilian central bank initiatives that promote competition in the retail banking sector. By the end of the second quarter of 2024, the company reported a net income of 61.8 million reais (approximately $11.3 million), nearly doubling its total income from the entire year of 2023.
The timing for the IPO in 2025 is strategic, with expectations that the Federal Reserve will have implemented interest rate cuts and the U.S. presidential election will have concluded, potentially fostering a more stable economic environment. Although the precise scale of the offering remains undecided, PicPay aims to keep it “only as big as necessary,” reflecting a prudent approach to its market entry strategy. This move also highlights a growing trend of emerging market firms seeking to tap into global capital through U.S. exchanges.
