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Stone Pagamentos Raises US$1.1b on Nasdaq

1 October 2018

Stone Pagamentos IPO’d on the Nasdaq, raising US$1.1b for an initial market cap of almost US$6.6b. Investors include Ant Financial (Alibaba’s investment arm), Madrone Partners (Walton family), Berkshire Hathaway, Tiger Global, Actis, Gávea Investimentos, Valor Capital, and 3G Capital’s founders Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira. 

(Reuters) Brazilian credit card processor StoneCo Ltd filed on Monday for an initial public offering (IPO) on New York’s Nasdaq, as competition speeds up among payment companies in Brazil and the economy recovers from a harsh recession.

In January, Reuters reported that Stone was planning an IPO in the U.S. by the second half of the year, following its rival PagSeguro Digital Ltd, which listed its shares on the New York Stock Exchange.

StoneCo and its shareholders intend to sell an undisclosed amount of shares in the offering, according to a securities filing.Shareholders include the company’s founders André Street and Eduardo Pontes, and Brazilian investment firm 3G Capital Inc’s founders Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira.

Madrone Capital Partners, a U.S.-based investment firm that manages part of the fortune of the Walton family, the majority owners of Wal-Mart Stores Inc (WMT.N), also has a stake, as does Tiger Global Management.Stone said in the filing it intends to use the proceeds for mergers, acquisitions and working capital. It said it intends to grow by offering banking services and creating a loyalty program.

Stone, founded in 2012, reported total revenues of 636 million reais ($158 million) and net income of 88 million reais in the first half of 2018. The company said it has 200,000 active clients.

The company has hired Goldman Sachs & Co, JPMorgan Chase & Co and Citigroup Inc as lead managers of the IPO, as Reuters reported in August.