SAO PAULO, Aug 17 (Reuters) - Brazilian credit card processor Stone Pagamentos SA has hired Goldman Sachs & Co , JPMorgan Chase & Co and Citigroup Inc as lead managers for a hoped-for New York initial public offering, three people with knowledge of the matter said on Friday.
A dual listing in New York and on Brazil’s B3 stock exchange has not been ruled out, one of the sources said.
Other underwriters on the deal include Morgan Stanley , and the investment banking units of Itaú Unibanco Holding SA and Credit Suisse, two of the people added, asking for anonymity because they are not authorized to speak publicly on the matter.
Goldman, JPMorgan, Morgan Stanley, Credit Suisse, Itaú BBA, Citi did not immediately comment. Stone declined to comment.
The IPO will be mostly primary, meaning the company will issue new shares and receive all proceeds to invest in expansion. But some existing shareholders also would like to sell part of their shares if possible, the sources said.
Key investors in Stone include founders André Street and Eduardo Pontes as well as Jorge Paulo Lemann, Marcel Telles and Carlos Alberto Sicupira, the founders of 3G Capital Inc, also the key stakeholder in Anheuser Busch Inbev NV and Kraft Heinz Co.
Madrone Capital Partners, a U.S.-based investment firm that manages part of the fortune of the Walton family, the majority owners of Wal-Mart Stores Inc, is also among Stone’s shareholders as are investment firms Gavea Investimentos Ltda and Actis LLP.
The company is timing its IPO for soon after Brazil’s October elections in the hope that the country’s stock market, under pressure in recent months, could rebound if a relatively investor-friendly candidate wins the contest.
Stone would be the second card processing company to go public this year in a bid to raise money to grow its business. PagSeguro, owned by Brazilian media group Universo Online SA, raised $4.4 billion in two share offerings this year.
Cielo SA, Brazil’s largest credit and debit card processor, is struggling as competition from newcomers like Stone and PagSeguro increases. Cielo’s shares are down nearly 40 percent this year, losing 25 billion reais ($5.88 billion) in market capitalization.
In January, Reuters reported that Stone had plans for an IPO in New York this year. ($1 = 3.9110 Brazilian reais) (Reporting by Tatiana Bautzer and Carolina Mandl; editing by Christian Plumb and James Dalgleish)