Image Credit: Bloomberg

Private equity firm Advent is considering several options for Argentina-based payments company Prisma Medios de Pago, including a potential initial public offering (IPO) valued at up to $5 billion, according to sources familiar with the matter. Prisma is collaborating with Morgan Stanley on this review, which could also involve a potential sale. Advent may look to offer about 30% of Prisma in a U.S. IPO this year, the sources said.

An IPO would capitalize on the growing demand for Argentine assets, according to the sources. However, the decision is still in the works, and Advent and Prisma could ultimately decide against pursuing an IPO or opt for another alternative. Representatives for Advent, Prisma, and Morgan Stanley declined to comment.

Advent acquired a majority stake in Prisma in 2019, valuing the company at $1.42 billion, and later bought the remaining shares in 2022 for approximately $360 million. Prisma is one of the largest processors of credit and debit card payments, as well as instant payments, in Argentina. It handles transactions for major card networks like Mastercard, American Express, Cabal, and UnionPay.

Before Advent’s acquisition, Prisma was controlled by 14 banks, who were required to sell their stake as part of a policy under former President Mauricio Macri’s government aimed at breaking up vertical integration in the sector.

Paraphrasing text from "Bloomberg"all rights reserved by the original author