São Paulo, Jan. 29 (GeokHub) Brazilian digital payments firm PicPay has made a successful return to public markets, ending a four-year drought of initial public offerings by Brazilian companies and raising fresh optimism for a revival in the country’s equity market.
The fintech’s initial public offering valued the company at approximately $2.6 billion, according to Brazilian business daily Valor Econômico. The transaction implies around 21% dilution for existing shareholders and could expand to nearly $500 million if underwriters exercise a 30-day option to purchase additional shares at the IPO price.
The listing marks a significant milestone for PicPay’s controlling shareholders, Wesley and Joesley Batista, who retain more than 90% of the company’s voting power. The brothers rebuilt their business empire after a high-profile corruption scandal a decade ago and now oversee a global portfolio spanning fintech, energy, mining, media, cosmetics and food processing across more than 20 countries.
Institutional Backing and Deal Structure
Investor demand was bolstered by Bicycle Capital, a growth fund led by former SoftBank executives, including Bolivian billionaire Marcelo Claure, which committed $75 million to the offering, according to regulatory filings.
The IPO was led by Citigroup, Bank of America, and Royal Bank of Canada. PicPay had previously explored a public listing in 2021 but postponed the plan amid volatile global markets.
Breaking Brazil’s IPO Drought
The offering is the first Brazilian IPO since 2021, when fertilizer producer Vittia listed on the local exchange. It also follows the New York Stock Exchange debut of digital bank Nubank in late 2021, which raised $2.6 billion and became Latin America’s most valuable bank by market capitalization.
Market participants say PicPay’s successful debut could open the door for more Brazilian companies to tap equity markets in 2026.
Anderson Brito, UBS BB’s head of investment banking in Brazil, said institutional investors expect more than 10 Brazilian IPOs this year, either domestically or abroad.
Why New York Still Wins
Despite optimism, analysts say Brazil’s high interest rates continue to push companies toward U.S. markets.
“With the benchmark rate at 15% a year, it’s difficult to compete with domestic fixed-income returns,” said Pedro Galdi, an analyst at fintech AGF.
In contrast, PicPay’s deal highlighted strong demand from U.S. investors. Ulrike Hoffmann, global head of equities at UBS Global Wealth Management, said broader IPO activity is expected to pick up in the United States in 2026, potentially benefiting Brazilian issuers as well.
Still, some market participants believe local listings could recover, particularly in defensive sectors such as infrastructure, as global conditions stabilize.
