Fintech company Pine Labs to file for IPO by mid-February
What's the story
Leading fintech firm Pine Labs is gearing up to file its initial public offering (IPO) documents by mid-February. The company had recently completed the process of shifting its base from Singapore to India. The strategic move comes as part of Pine Labs's plan to tap into the Indian capital market at the earliest and go public by August.
Banker lineup
Pine Labs appoints bankers for IPO
Pine Labs has hired the services of several top financial institutions for its upcoming IPO in India. The list includes Axis Capital, Morgan Stanley, Citi, Jefferies, as well as JPMorgan. Pine Labs's IPO could be one of the biggest in the payment sector since Paytm's $20 billion listing in 2021. However, the company is yet to finalize its valuation. Pine Labs may not look for a huge premium over its last funding round which valued it at $5 billion.
Speculation
Valuation estimates vary
In April, Baron Funds revised Pine Labs's valuation to $5.8 billion, while Invesco pegged it at $4.8 billion. A banker involved in the process said that once the draft red herring prospectus (DRHP) filing is completed, the company will start its roadshows. This move is expected to help determine the company's value and ensure potential returns for investors.
Potential earnings
Final valuation could be between $6-8B
The final valuation of Pine Labs could be between $6 billion and $8 billion (₹50,000-70,000 crore), making it a $1.2-1.5 billion IPO. The company is backed by several private equity investors and venture capital firms like Peak XV, PayPal Ventures, Alpha Wave Global, Temasek and MasterCard. Existing investors are likely to sell around 20% of their stakes in the company in this process.
Fundraising goals
IPO to raise primary capital
Apart from offering an exit route to investors, Pine Labs's IPO is also expected to raise some primary capital. Since its founding in 2009, the company has raised some $1.32 billion across 14 rounds of funding, data from Tracxn shows. This upcoming IPO would mark a major milestone in the company's financial journey and growth strategy.