By Prakhar Srivastava and Arasu Kannagi Basil
Feb 10 (Reuters) - Brazilian fintech Agibank has downsized its U.S. initial public offering by more than 50% and slashed the proposed price range, according to a regulatory filing on Tuesday.
The Sao Paulo-based company now plans to sell 20 million shares between $12 and $13 apiece. It had earlier offered roughly 43.6 million shares between $15 and $18 apiece.
The downsized offering marks a setback for the Brazilian IPO market, which had shown early signs
of a revival in 2026 after a years-long downturn.
Agibank's move comes on the heels of the poor aftermarket performance of rival digital bank PicPay, which went public in New York last month in what was the first new stock listing by a Brazilian company in more than four years.
"Agibank likely faced valuation pressure amid the nearly 20% post-IPO decline of its closest recently listed peer, PicPay, which set a negative precedent for the sector just ahead of their roadshow," IPOX Research Associate Lukas Muehlbauer said.
"Notably, the restructured deal now consists entirely of primary shares, as existing shareholders chose to retain their positions rather than sell at a lower valuation. While this decision allowed the IPO to proceed, it introduces a potential stock overhang risk down the line."
Agibank was planning a stock market debut in Brazil in 2018, but the firm struggled to lure investors during a volatile election year.
Six years later, Agibank raised 400 million reais at a 9.3 billion reais valuation from Daniel Goldberg's private equity fund Lumina Capital Management.
Agibank is expected to begin trading on the New York Stock Exchange under the symbol "AGBK" on Wednesday.
Goldman Sachs, Morgan Stanley and Citigroup are the global coordinators for the offering.
(Reporting by Arasu Kannagi Basil and Prakhar Srivastava in Bengaluru; Editing by Leroy Leo and Krishna Chandra Eluri)
