Brazilian credit card processing firm Stone Pagamentos SA is planning its initial public offering in New York by the second half of the year, three people with knowledge of the matter said, to raise funds to compete with larger rivals Cielo SA(CIEL3.SA) and the Rede division of Itaú Unibanco Holding SA (ITUB4.SA).

Stone has discussed with investment banks a transaction in which the company would raise money and some shareholders would sell part of their stakes, the sources added, asking for anonymity because the talks are still private. Stone has not yet hired advisers.

The company, controlled by founders André Street and Eduardo Pontes, has among its minority shareholders British buyout firm Actis LLP and Brazil’s Gavea Investimentos Ltda.

READ FULL ARTICLE HERE