Brazilian digital bank PicPay is expected to set the offer price for its U.S. initial public offering on Wednesday at the top of the marketed band - $19 per share - according to a person familiar with the matter. The indicated price range for the deal was $16 to $19 per share.
The source told reporters that demand for the IPO has already topped $4.5 billion, which is roughly ten times the amount the company aims to raise from the sale. If priced at the high end of the range and reflecting reported investor interest, the transaction would place PicPay's market value in a band between $2.2 billion and $2.6 billion.
The offering is notable for marking the reappearance of Brazilian issuers on New York exchanges after a four-year drought of listings from the country. The company is backed by the Batista family, who are identified as billionaire investors in the source's account.
A Brazilian financial newspaper was reported to have first published the pricing information earlier on Wednesday. PicPay did not immediately respond to a request for comment regarding the expected pricing or the reported demand for the deal.
PicPay previously explored a U.S. listing in 2021 but abandoned that attempt amid market headwinds, a detail the source referenced in the account of the current offering. The present activity around the IPO, including the reported oversubscription and the prospective valuation range, reflects the mechanics of this particular transaction as shared by the source.
Details provided by the source form the basis of the reported indications about pricing, investor demand and valuation. No additional statements from PicPay were available at the time the source's expectations were reported.
Contextual note - The information above is drawn from a source familiar with the transaction and reported media coverage; PicPay has not issued a public comment responding to the reported pricing plans.