Pine Labs has announced the price band for its initial public offering (IPO) on the Mumbai Stock Exchange, setting it between $2.39 and $2.51 per share. The PayPal-backed fintech company aims to raise approximately $439 million through this public offering, valuing the company post-IPO at around $2.89 billion.
The IPO comprises a fresh share issue worth about $234 million, alongside a secondary sale by existing investors. Notably, PayPal and Mastercard will participate in the secondary sale component, selling their stakes as part of the offering. This comes after the company revised its initial plan to raise $290 million through new share issuance, reflecting a strategic adjustment in their funding approach.
Anchor investors will have the opportunity to place bids between November 6 and November 7 for early participation in the offering. Subsequently, the general public subscription window opens on November 11 for both retail and institutional investors. Major financial institutions managing the transaction include Axis Bank, Morgan Stanley, Citigroup, JPMorgan Chase, and Jefferies.
Pine Labs operates as a point-of-sale (POS) solutions provider across India and various international markets. The company deploys tens of thousands of terminals and digital checkout systems to facilitate merchant payment processing. Its diverse product portfolio encompasses multiple fintech solutions designed to streamline transaction management for retail businesses.
With offices in Singapore, Malaysia, and the United Arab Emirates, Pine Labs actively supports its regional operations beyond India. The rising adoption of digital payments and contactless transactions has driven significant growth in merchant adoption rates. Transaction volumes have surged as more businesses integrate Pine Labs’ payment technologies into their operations.
International revenue contributed between 21% and 23% of the company’s total sales in the previous financial year. Southeast Asia and the Middle East remain key growth markets for Pine Labs’ overseas expansion plans, as the company works to strengthen its geographic footprint beyond the domestic market.
The funds raised from the IPO will be strategically allocated to multiple priorities. A portion of the fresh capital will be used to repay existing debt, which will help strengthen the company’s balance sheet and reduce borrowing costs. This financial restructuring is aimed at enhancing overall operational flexibility and financial health.
Additionally, Pine Labs plans to invest in IT infrastructure and cloud platforms. Funding will be directed towards software development and digital payment technologies to support product enhancements, focusing on improving transaction speed, efficiency, and security measures.
Finally, the company intends to use part of the proceeds to drive international expansion activities, particularly in emerging markets. Establishing a stronger presence in Southeast Asia and the Middle East will enable Pine Labs to diversify its revenue streams and reduce dependence on the Indian market.
Overall, Pine Labs’ upcoming IPO marks a significant milestone as the fintech firm positions itself for continued growth and geographic diversification in the rapidly evolving payments landscape.
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