AGI reduced both the size and valuation on its NYSE IPO in response to investor pushback, blunting the Brazilian fintech’s growth ambitions.
Goldman Sachs, Morgan Stanley and Citigroup are now marketing 20m new shares at US$12–$13, a dramatic overhaul from the 43.6m shares at US$15–$18 at launch. The banks closed the books at 12:00pm Tuesday in New York, ahead of pricing after the market close for a Wednesday debut.
While multiple-times oversubscribed, the offering is likely to be concentrated among long-only investors with pricing likely to come at US$12, the bottom of the revised range, the banks communicated in a revised message sent out ahead of the US market open Tuesday.
The move comes after rival PicPay’s disappointing US$434m NYSE IPO in late January. Despite pricing at the high end of the marketing range and featuring a US$75m anchor order at launch, the rival Brazilian fintech’s shares have fallen 17.7% from offer to US$15.64.
Agibank, as the issuer is also known, is using proceeds from the offering for general corporate purposes, including potential acquisitions.
At a US$12 offer price, Agibank is being valued at US$1.9bn. That is just above the R$9.3bn (US$1.7bn) valuation on a R$400m investment in late 2024 by Lumina Capital Management.
With the downsize, Agibank’s offering no longer meets the criteria for “qualified IPO” under the terms of the agreement with Lumina, meaning the Brazilian asset manager will retain a board seat and have a say over matters of corporate governance.
Agibank, which operates as hybrid digital-plus-physical bank, ran afoul of Brazilian regulators late last year for harmful practices related to payroll deductions under the country’s national security systems payment record. The Brazilian government lifted a suspension from participating in the program on January 12 after Agibank agreed to enhanced oversight and a R$1m compensatory payment.
In 2025, Agibank reported net income of R$1.04bn–$1.05bn on a 44.8% growth in revenue to R$10.55bn–$10.7bn. Total loans to customers grew by about 42% last year to R$34.5bn–$34.9bn, based on preliminary results provided in its IPO prospectus.