StoneCo's IPO: What You Need To Know

Brazilian payments processor StoneCo Ltd. is set to begin trading on the Nasdaq Global Market Thursday under the ticker symbol “STNE.”

The Details

StoneCo priced a 50.7-million-share IPO at $24 per share Thursday morning, according to Benzinga Pro. 

The company had said in an amended F-1 statement it intends to raise gross proceeds of $1 billion through the offering of 47.7 million shares.

At the midpoint of the range, StoneCo would assume a fully diluted market value of $6 billion, according to Nasdaq. Based on the F-1, the company plans to utilize the net proceeds for general corporate purposes, such as mergers, acquisitions or investments.

The primary underwriters of the IPO include Goldman Sachs, JPMorgan and Citigroup.

The Company

StoneCo. Was founded in 2012 and has since become a leading provider of financial technology services across in-store, online and mobile channels in Brazil.

The company has created a strong client-focused culture that is based on one primary approach, the Stone Business Model, which “enables us to control the client experience and ensure that interactions are provided by our people or our technology," according to the F-1 filing.

The business model combines an advanced, end-to-end, cloud-based technology platform, a differentiated hyperlocal and integrated distribution approach and "white glove," on-demand customer service, according to StoneCo. 

StoneCo. reported $287 million in revenue for the year ending in June 2018. Additionally, the company has a market share of 5.5 percent, a growth rate of 127 percent and 230,000 reported active clients as of the third quarter in 2017.

The company listed specific growth opportunities, such as the expansion of stone hubs and integrated partners, as well as the sale of additional solutions to clients. The increased use of e-commerce and an improved shift to digital channels should create market opportunity, the F-1 said.

Benzinga's breaking-news platform, Benzinga Pro, covers many IPO openings in real time. To see these indications, sign up for Benzinga Pro and filter by the "IPOs & Offerings" news category.

Related Links:

Elastic's IPO: What You Need To Know

Studio City's IPO: What You Need To Know