StoneCo. Ltd
| Public company | |
| Traded as | NASDAQ: STNE |
| ISIN | 🆔 |
| Industry | Payment gateway, financial services |
| Founded 📆 | 2012 in São Paulo, Brazil |
| Founder 👔 | |
| Headquarters 🏙️ | , , |
Area served 🗺️ | |
Key people | Thiago Piau (CEO), Eduardo Pontes & Andre Street |
| Revenue🤑 |  US$ 1.579 billion 2018 |
| US$ 342.8 million 2018 | |
| Total equity | US$ 11.395 billion 2019 |
| Members | |
Number of employees | 5,000 |
| 🌐 Website | www |
| 📇 Address | |
| 📞 telephone | |
StoneCo. Ltd is a Brazilian fintech company offering multibrand acquiring services through POS (point of sales), therefore processing credit and debit transactions and providing financial services across the entire Brazil’s territory. [1][2]
StoneCo. Ltd also operates in the Brazilian stock market since 2014 and made its initial public offering (IPO) on NASDAQ in 2018.[3]. A major international investor was Warren Buffett[4]
History
StoneCo. Ltd founders were motivated by the breach of the double monopoly regarding the exclusivity of credit card machines in Brazil, regulated by the Central Bank of Brazil, the Senate and Justice Commission and the Administrative Council for Economic Defense (CADE). The company started operating in 2014. After two years, it prepared to enter the market through the acquisition of licenses with payment brands, such as Visa and Mastercard.
In 2016, StoneCo. made the total acquisition of Elavon Brazil [5], an accrediting company that had operated in Brazil since 2011 and was the fourth largest acquirer in the means of payment market. At the time, Elavon had about 2% of the payment methods market, which was incorporated into StoneCo.'s customer base in 2016. The two companies continued as independent brands until mid-2018, after which Stone took over the entire operation.
In October 2018, the company placed a public IPO, through shares, on the American stock exchange NASDAQ.[6]
In August 2020, the company made a purchase offer of R$ 6.4 billion and acquired Software House Linx.[7]
IPO
StoneCo. Ltd hired Goldman Sachs, JPMorgan Chase and Citigroup for the New York initial public offering in August 2018. In October 2018, Stone filed for IPO on NASDAQ, New York.[8]
On October 25, 2018, Stone entered the American stock exchange NASDAQ [6], raising a total funding value above the indicative range of US $ 1.22 billion, starting its shares at the price of US $ 24.00 and ending with an increase of 30%, having been quoted at US $ 31.35. [9] On the eve of the launch on the exchange, Stone released a statement informing about a data leak.[10]
The IPO had the participation of major international investors such as Warren Buffett.[11], through the investment holding company Berkshire Hathaway, and Ant Financial of the Chinese company Alibaba [12][13][14]
Controversy
In October 2018, on the eve of the launch on the stock exchange at NASDAQ, Stone released a statement informing about a data leak.[10]
Afterwards, during the Covid-19 pandemic, StoneCo. laid off 20% of its workforce, firing 1,300 employees. The crisis caused by the coronavirus came amid fierce competition among Brazilian card processors, which led to a price war.[15]
References
- ↑ Yahoo!Finance - Do StoneCo and PagSeguro Compete With MercadoLibre?https://finance.yahoo.com/m/d01b08ed-4d95-347a-a155-7033bf801b22/do-stoneco-and-pagseguro.html
- ↑ Valor Capital Group - StoneCo is enabling the digital economy through payments https://valorcapitalgroup.com/case-studies/how-stoneco-became-a-major-player-in-the-brazilian-acquiring-market/
- ↑ Reuters - Brazilian credit card processor Stone files for Nasdaq IPO https://www.reuters.com/article/us-stone-ipo/brazilian-credit-card-processor-stone-files-for-nasdaq-ipo-idUSKCN1MB3X6
- ↑ Bloomberg - Stone Co. scores key win in battle for Linx https://www.bloomberg.com/news/articles/2020-11-17/buffett-backed-stoneco-scores-key-win-in-battle-for-linx
- ↑ Mehl Partners- Lemann's Stone Pagamentos Buys Elavon do Brasil From Citigroup $C and US Bank $USB https://mehlpartners.com/lemanns-stone-pagamentos-buys-elavon-do-brasil-from-citigroup-c-and-us-bank-usb
- ↑ 6.0 6.1 Reuteurs - Brazil card processor Stone hires banks for IPO https://www.reuters.com/article/us-stone-ipo-idUSKBN1L22C5
- ↑ Financial Post - Brazil's Linx in late-stage deal talks with card processor StoneCo https://financialpost.com/pmn/business-pmn/brazils-linx-in-late-stage-deal-talks-with-card-processor-stoneco-2
- ↑ Nasdaq - Stone Co. Ltd. rings the Nasdaq stock market opening bell https://business.nasdaq.com/discover/market-bell-ceremonies/detail.html#!/!?ceremonyId=8347
- ↑ CrunchBase - StoneCo IPO Prices Above Range, Raises Over $1B https://news.crunchbase.com/news/stoneco-ipo-prices-above-range-raises-over-1b/
- ↑ 10.0 10.1 Reuters - Brazil prosecutors open investigation into Stoneco software leak https://www.reuters.com/article/stoneco-software-leak/brazil-prosecutors-open-investigation-into-stoneco-software-leak-idUSE6N1S402K
- ↑ Investors - Warren Buffett Berkshire Stone Co. https://www.investors.com/news/warren-buffett-berkshire-hathaway-stoneco-investment/#:~:text=StoneCo%20IPO,billion%20to%20use%20for%20acquisitions
- ↑ Reuters - China's Ant Financial to commit 100 million to IPO of Brazil's StoneCo. Fintechhttps://www.reuters.com/article/us-stone-ipo-alibaba/chinas-ant-financial-to-commit-100-million-to-ipo-of-brazils-stoneco-idUSKCN1MW2YA
- ↑ Bloomberg - China's Ant Financial to commit 100 mi to IPO of Brazil's Stone Co. https://www.bloomberg.com/news/articles/2018-10-22/alibaba-s-ant-financial-joins-buffett-in-hot-brazil-fintech-ipo
- ↑ Nasdaq - Why Warren Buffett's Brazilian Fintech Stock Is a Buy and Hold for the Next Decade https://www.nasdaq.com/articles/why-warren-buffetts-brazilian-fintech-stock-is-a-buy-and-hold-for-the-next-decade-2020-03
- ↑ Reuters - Brazilian card processor Stone Co. lays off 20% of workforce, 1,300 employees https://www.reuters.com/article/us-stoneco-layoff-idUSKBN22O31N
External links
- Business data for StoneCo.: Google Finance
- Yahoo! Finance
- Bloomberg
- Reuters
- SEC filings
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