China’s Ant Financial interested in IPO of Brazil’s Stone Pagamentos

23 October 2018

Ant Financial Services Group, of China’s Alibaba group, will invest US$100 million in the initial public offering (IPO) of shares of Brazilian company Stone Pagamentos, according to local press reports.

Ant Financial, formerly known as Alipay, is the latest investment company to show interest in Stone’s first IPO, which could raise up to US$1.1 billion from the transaction, which will take place on the Nasdaq stock exchange.

The Reuters news agency reported that banks Goldman Sachs, JPMorgan and Citigroup, coordinators of the offer, may propose the increase of the price of the shares of Stone over the range of US$21 to US$23 each, a decision that still has to be discussed with the bidding company .

Warren Buffett’s Berkshire Hathaway and some of Stone’s existing shareholders, including Madrone Capital Partners, may acquire about half of the more than 47.7 million shares put up for sale.

The company, controlled by its founders André Street and Eduardo Pontes, has among its minority shareholders British acquisition company Actis LLP and Brazilian company Gávea Investimentos Ltda.

Stone Pagamentos is, as its Portuguese name suggests, a payment processing company and is authorised by the VISA and Mastercard networks to process and authorise transactions using credit and debit cards. (macauhub)