The Brazilian IPO window is open, but the draft is chilly.
Agibank (AGBK) successfully priced its U.S. initial public offering on Wednesday, raising $240 million by selling 20 million shares at $12.00 each. However, the deal reflects a cautious market: the company had to sharply reduce both its deal size and price range (originally $12-$13) to get across the finish line.
💰 THE VALUATION:
- Market Cap: The IPO values Agibank at $1.92 billion.
- Context: This valuation comes after Lumina Capital Management invested 400 million reais at a 9.3 billion reais valuation in 2024.
- Revenue Growth: Despite the pricing pressure, Agibank is growing fast. Revenue for 2025 is expected to hit ~10.7 billion reais ($2.03B), up significantly from 7.28 billion reais the prior year.
📉 THE MARKET HEADWINDS: Agibank is the second Brazilian fintech to list in New York in recent weeks, following PicPay (PICS).
- The “PicPay Problem”: PicPay’s stock has plunged ~20% since its debut last month, dampening investor appetite for Latin American fintech exposure.
- The Resilience: Agibank, founded in 1999 by Marciano Testa, pivoted to a U.S. listing after shelving plans for a domestic IPO in 2018.
💡 ANALYST TAKEAWAY: Getting public is the victory here. By accepting a lower valuation ($12/share) to secure $240M in hard currency, Agibank has capitalized itself to compete in Brazil’s crowded credit market while others wait on the sidelines. The IPO window is technically “open,” but only for issuers willing to swallow a bitter pill on pricing.
👇 LatAm Investors: Is the 20% drop in PicPay a structural warning, or a buying opportunity for the sector?