Agibank Founder Becomes Billionaire Amid IPO Drop

Agibank founder Marciano Testa achieved billionaire status on Wednesday, even as his company, Agi Inc., faced a challenging initial public offering on the New York Stock Exchange. The fintech, known as Agibank, saw its shares drop 10% on its trading debut after a significant reduction in both the price and number of shares offered. Testa's substantial 63% ownership in Agibank is now valued at $1.1 billion, based on the closing price of $10.75.

This listing represents one of the few major IPOs by a Brazilian company in the U.S. since 2021. Agibank's debut was seemingly affected by the recent IPO of fellow Brazilian fintech PicPay, whose shares have fallen 23% since its Nasdaq listing last month. Both Agibank's and PicPay's IPOs are viewed as a positive sign for capital markets connected to Brazil, Latin America's largest economy.

Agibank, with Testa as chairman, had considered a U.S. listing since at least 2019, having previously attempted and failed to list on Brazil's domestic stock exchange. The company's business model integrates a digital platform with over 1,000 physical 'smart hubs,' serving over 6.4 million active clients as of September. Its primary focus is on offering loans to retired workers, with payments automatically deducted from their social security benefits.