Brazilian mobile banking app PicPay is reportedly preparing for a US initial public offering (IPO) with a target of raising up to $500m.
The company is collaborating with Citigroup, Royal Bank of Canada, and Bank of America for the potential listing, reported Bloomberg, citing sources.
PicPay’s IPO could occur this year, though its timing may be impacted by the ongoing government shutdown affecting the US Securities and Exchange Commission (SEC).
The SEC recently issued guidance potentially allowing more IPOs to proceed.
PicPay initially filed for a US IPO in April 2021, aiming for an $8bn valuation, but withdrew the registration two months later.
Current discussions about the IPO are ongoing, and details such as the offering size and timing are subject to change. There is also a possibility of additional banks joining the effort, said the publication.
Established in Vitória, Brazil, in 2012, PicPay is a fintech company offering a range of financial services, including payments, investments, and shopping solutions.
In 2015, the company became part of the J&F group, one of Brazil’s largest business conglomerates.
PicPay operates a dual-sided platform serving both consumers and sellers and employs over 4,000 people.
In July 2021, PicPay announced the acquisition of Guiabolso, a Brazilian fintech specialising in open banking services, which serves six million users.
This acquisition allowed PicPay to integrate Guiabolso’s offerings, which had six million users and 1bn reais ($180.5m) of credit generated on its platform through partnerships with financial institutions.
