Agibank’s IPO Cut by More Than Half Prior to Going Public
In a surprising turn of events, Brazilian digital bank Agibank has considerably scaled back its initial public offering (IPO) by over 50% just hours before its debut. The São Paulo-based fintech company, known for providing banking services and low-cost loans to consumers, is scheduled to debut on the New York Stock Exchange (NYSE) on February 11, 2026.
Details of the Revised IPO
According to an amendment filed with the SEC on February 8, Agibank has revised its share volumes and price ranges. The company now plans to offer 20 million shares at a price range of $12 to $13 per share, a significant reduction from its initial plan to offer 43.6 million shares at $15 to $18 per share. Consequently, Agibank is expected to raise approximately 65% less in proceeds than initially projected.
As reported by Bloomberg on the afternoon of February 8, a source close to the matter revealed that Agibank sold the 20 million shares at $12 each, giving the firm an estimated valuation of $1.9 billion after its official market debut.
Market Experts Weigh In
Senior Analyst at Pitchbook, Rudy Yang, suggests that the adjustment in Agibank’s IPO is reflective of a broader trend in the fintech IPO market. He told American Banker, “Recent fintech listings have delivered mixed aftermarket performance, reinforcing investor sensitivity to valuation and near-term fundamentals rather than growth narratives alone.”
Yang further added, “This move doesn’t necessarily signal a shutdown of the U.S. fintech IPO market, but it does underscore that issuers are having to price conservatively to get deals done. Even after the cut, Agibank is coming at a relatively modest valuation compared to high-growth fintech peers, which suggests the company may be prioritizing deal certainty over maximizing price in a challenging environment.”
Agibank’s Position in the Fintech Market
With a reported 6.4 million active users, Agibank was valued at 9.3 billion reais (~$1.7 billion) by investors in a December 2024 funding round. The digital bank also reported a net interest income of $623.2 million for the first nine months of 2025.
Agibank’s IPO follows fellow Brazilian fintech PicPay’s public debut on Nasdaq in late January. However, since its opening day, PicPay’s share price has decreased by around 20%. While some experts view this as a cautionary tale for Agibank, others see it as a common occurrence in the IPO market.
A Sign of Larger Market Shifts
André Thiollier, a partner at Foley & Lardner, views the entry of Agibank and PicPay into the U.S. IPO market as indicative of larger market shifts across fintech, particularly between the U.S. and Brazil. He states, “Brazil is one of the countries with the most fintechs in the world. There are large companies taking this window to IPO in the U.S. market, which is something that we haven’t seen since Nubank.”
Agibank’s decision to cut its IPO may be seen as a move of caution in a volatile market, demonstrating the shifting dynamics of the fintech industry and underscoring the importance of investor sensitivity to valuation. While the fintech IPO market continues to experience its ebbs and flows, the arrival of Brazilian fintechs on American soil is a trend worth watching.
Source: American Banker
