Bank of America Expects Surge of Brazilian IPOs After 5-Year Drought

Bank of America expects Brazilian companies to launch at least 10 initial public offerings in 2027, Reuters reported Monday (May 26).

These listings are expected to take place in both Brazil and the United States, and the deals should start at around $500 million, the report said, citing comments made to reporters by Bruno Saraiva, co-head of Investment Banking Brazil and head of Equity Capital Markets Latin America at Bank of America.

Brazil’s B3 stock exchange had gone nearly five years without an IPO until Compass Gas e Energia completed one earlier this month, according to the report. However, Brazilian companies PicPay and Agibank listed shares on U.S. exchanges, per the report.

PYMNTS reported in January that PicPay was valued at $2.5 billion in a U.S. IPO in which it raised $434 million. The Brazilian FinTech sold 22.8 million shares at $19 each, which was the high end of its target price range.

PicPay’s market entry had become one of the most closely watched Brazil-linked FinTech listings since the region’s equity-capital-markets pipeline cooled after Nubank’s debut in 2021.

At the time of PicPay’s IPO, the Latin American FinTech space was enjoying a resurgence of funding, particularly from venture capital, that allowed for “steady financial innovation.”

PicPay CEO Eduardo Chedid saw the listing as an inflection point rather than an endpoint, he told PYMNTS CEO Karen Webster in an interview posted in February.

“We’ve been on this road for a while, and so it’s really exciting to reach that milestone,” Chedid said. “But it’s really a new start.”

Reuters reported in February that Agibank raised $250 million in its U.S. IPO. Agibank opted to pursue a U.S. listing after struggling to attract investors in Brazil during a volatile election year, according to the report.

It was reported May 11 that Brazilian payments firm Elo is working on an IPO and has tapped banking partners as it prepares to list in the U.S. in the second half of the year.

Bloomberg reported that Elo’s plans for a listing shows that Brazil’s IPO market could be ramping up after the five-year dry spell that ended earlier this year.