By Brazil Stock Guide – Agibank was forced to rework its New York IPO at the last minute, cutting both price and size to get the deal done, according to Valor Econômico. The indicative range was reduced to $12 to $13 a share, down from $15 to $18, underscoring a sharp reassessment of risk as the offer heads to pricing.
The reset reflects a tougher market for Brazilian financial listings abroad. Investors questioned whether Agibank’s recent growth can be sustained, even after the bank disclosed R$ 832 million ($167 million) in net income in IPO materials. Appetite for emerging-market financials has narrowed as buyers demand clearer visibility on earnings quality.
Comparables added pressure to the bookbuild. Shares of PicPay, which listed on Nasdaq in January, have fallen about 15% since debut, becoming a negative reference during demand soundings. Regulatory issues also weighed on sentiment. Temporary blocks on new payroll-deducted loans linked to Brazil’s INSS raised concerns among prospective investors, Valor reported.
To unlock the transaction, Agibank also shrank the deal’s scope. The IPO now includes 20 million shares in the base offer, plus up to 3 million overallotment shares, in a 100% primary sale. Expected proceeds dropped to roughly $266 million to $299 million, well below the earlier potential of up to $828 million, highlighting a more selective reopening of the U.S. IPO window for Brazilian issuers.