Pine Labs Downsizes IPO to $700 Million, Set for October Launch
Digital payments provider Pine Labs is preparing for an IPO in late October, aiming to raise up to $700 million. The offering includes a fresh issue of $295 million and sale of 147.8 million shares by existing investors. Pine Labs operates in India, Singapore, Malaysia, and UAE, specializing in payment solutions and POS terminals. The company reported revenue of 13.40 billion and a net loss of 1.90 billion for FY2024. Pine Labs has received regulatory approval and enlisted major financial institutions as advisors for the IPO.
*this image is generated using AI for illustrative purposes only.
Digital payments provider Pine Labs is gearing up for its Initial Public Offering (IPO) in the second half of October, with plans to raise up to $700 million. This move marks a significant step for the company, which is backed by industry giants Mastercard and PayPal.
IPO Details
Pine Labs has initiated roadshows for its share sale, but has scaled back the offering size from its initial target of $1 billion. The revised IPO structure includes:
- A fresh issue worth ₹26 billion ($295 million)
- Sale of 147.8 million shares by the founder and existing investors
Key investors participating in the offer-for-sale include Peak XV Partners and Invesco, who have reduced their portion of shares on offer.
Company Overview
Pine Labs has established itself as a prominent player in the digital payments ecosystem, with operations spanning multiple countries:
- India
- Singapore
- Malaysia
- UAE
The company specializes in payment solutions and point-of-sale terminals, catering to businesses across these regions.
Financial Performance
For the fiscal year ending March 2024, Pine Labs reported:
| Metric | Amount (in billions) |
|---|---|
| Revenue | 13.40 |
| Net Loss | 1.90 |
These figures underscore the company's significant market presence, while also highlighting the challenges it faces in achieving profitability in the competitive fintech landscape.
Regulatory Progress and Advisors
Pine Labs has made substantial progress on the regulatory front:
- Filed its draft prospectus in June
- Received regulatory approval this month
The company has enlisted a roster of prominent financial institutions to advise on the IPO:
- Axis Bank
- Morgan Stanley
- Citigroup
- JPMorgan
- Jefferies
Market Implications
The downsizing of the IPO from $1 billion to $700 million reflects a cautious approach, possibly in response to current market conditions or investor sentiment. Despite this reduction, the IPO remains one of the larger offerings in the Indian market, highlighting the significant interest in the fintech sector.
As Pine Labs prepares to go public, investors and industry observers will be keenly watching how this digital payments provider performs on the stock market, especially given its strong backing from established financial players like Mastercard and PayPal.
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