Agibank Cuts IPO Price Following PicPay Plunge

After saying in a Jan. 29 filing with the Securities and Exchange Commission that it expected to offer 43.6 million shares at a price between $15 and $18, the company said in a Tuesday (Feb. 10) filing that it expected to offer 20 million shares at a price between $12 and $13.

Bloomberg reported Tuesday that Agibank made the change hours ahead of the sale and that the company is expected to price the shares Tuesday after the U.S. markets close.

The company reduced the size of its IPO after the shares of one of its competitors, Brazilian FinTech PicS, or PicPay, dropped 20% in the time since its U.S. IPO in late January, according to the report.

PicPay raised $434 million in its IPO, selling 22.8 million shares at $19 each, which was the high end of its price range.

PYMNTS reported that PicPay’s market entry was one of the most closely watched Brazil-linked FinTech listings since the region’s equity-capital-markets pipeline cooled in the wake of Nubank’s debut in 2021.

Agibank provides specialized financial services in Brazil, enabling nearly 6.4 million active clients to access their social security benefits, severance fund benefits and public or private sector payrolls through secured lending solutions and banking, credit and insurance products, according to its SEC filing.

The company is focused on consumers who have been underserved by incumbent banks and digital-only banks. It reaches these consumers through a hybrid engagement model that includes both an app and asset-light retail locations dubbed “Smart Hubs,” per the filing.

It was reported Jan. 9 that Brazil’s social security system, INSS, stopped Agibank from making new payroll-deduction loans for retired workers in December, citing “serious irregularities.”

Agibank was valued at 9.3 billion Brazilian real (about $1.8 billion today) in December 2024 when it secured an investment of 400 million Brazilian real (about $77 million today).

“Agibank has a unique hybrid business model in Brazil, providing high value to our customer base through transactional and credit primacy,” Agibank founder and Executive Chairman Marciano Testa said at the time in a press release. “To achieve this, we leverage the best available technologies, such as artificial intelligence and big data, combined with a proprietary hybrid platform.”