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By Arghyadeep Dutta, 4:00 pm ET:
Brazilian fintech company Conductor, backed by Visa Inc and venture capital firm Riverwood Capital, has hired banks for an IPO in the U.S. that could come as early as this year, Reuters reported citing sources familiar with the matter.
Conductor provides technology for financial services allowing retailers, banks, and other fintech startups to offer credit cards and payment wallets to clients.
Investment banking units of Goldman Sachs, JPMorgan, Bank of America, and Credit Suisse will manage the offering, sources told Reuters.
The arrival of several newcomers is boosting the Latin American financial sector, and if Conductor completes a listing on a U.S. exchange, it will trail the footsteps of two other Brazilian payments firms, StoneCo Ltd listed in Nasdaq and PagSeguro Digital Ltd listed in NYSE.
However, it is still unknown in which U.S. exchange the firm will choose for the listing, how much money it would seek to raise, or how much valuation it is expecting.
The fintech has 95 million users and process payments transaction worth $20 billion each year in Latin America, according to Conductor's website.
Last year, it started expanding across more Latin American countries like Mexico, Argentina, Peru, Ecuador, and Colombia.
Conductor is planning to raise proceeds from the offering to fund its market expansion, launch products, and engage in M&A, the report said.
In October, the company raised around $170 million led by U.S. hedge fund Viking Global Investors, Singapore's Temasek Holdings, and Sunley House Capital Management, an affiliate of Advent International, Crunchbase data shows.
In an interview with Reuters in October, Antonio Soares, the CEO of Conductor, said the company is poised for rapid growth in the region as much of Latin America's population does not have a bank account, creating opportunities for non-traditional finance firms.
Regulators in Latin America, such as Brazil's central bank, are also encouraging more competition for financial services and products, as around a third of Brazilians do not have a bank account.
Picture Credit: Latamist