Batista brothers' fintech PicPay files for IPO on Nasdaq

·1-min read

(This April 21st story corrects J&F shareholders to Wesley and Joesley, not Wesley and Jose)

SAO PAULO (Reuters) - Brazilian financial startup PicPay has filed with the U.S. Securities and Exchange Commission for an initial public offering on Nasdaq, according to a Wednesday filing.

Founded in 2012, payments wallet PicPay is controlled by group J&F Investimentos SA, a holding company owned by Brazilian billionaire brothers Wesley and Joesley Batista, who also own meatpacker behemoth JBS SA.

With 28.4 million active users, PicPay posted total revenues of 390 million reais in 2020 and a loss of 804 million reais ($144.37 million).

The loss was mainly due to high selling expenses, which included roughly 622 million reais in payments related to the brand promotion and development, PicPay said, adding payments were settled as a capital increase.

In March, however, J&F entered an agreement to transfer the trademark PicPay to the company for no amount paid.

PicPay also has agreements with Banco Original, a bank controlled by J&F, related to cards and revolving credit lines.

The company, which has Jose Antonio Batista as CEO, said it plans to raise an undisclosed amount of money to fund its growth strategy, which may include M&As.

BTG Pactual, Bradesco BBI, Barclays and Santander will manage the IPO.

($1 = 5.5690 reais)

(Reporting by Aluisio Alves and Carolina Mandl, writing by Carolina Mandl; Editing by Sam Holmes and Diane Craft)