Hsbc Holdings PLC Grows Stake in StoneCo Ltd. (NASDAQ:STNE)

Hsbc Holdings PLC, a multinational banking and financial services company headquartered in London, has announced that it has increased its stake in StoneCo Ltd., a leading provider of digital payment solutions for merchants in Brazil. The transaction was completed on August 19, 2021, and Hsbc Holdings PLC now owns approximately 5.8% of the outstanding shares of StoneCo Ltd.

StoneCo Ltd. is a rapidly growing company that provides a range of digital payment solutions to merchants in Brazil, including mobile payments, point-of-sale systems, and e-commerce platforms. The company has been expanding its operations in recent years, both organically and through acquisitions, and has seen strong growth in its customer base and revenue.

Hsbc Holdings PLC has been a long-term investor in StoneCo Ltd., having first invested in the company in 2016. The bank has been impressed with StoneCo's growth and innovation, and believes that the company is well positioned to continue its success in the Brazilian market.

"We are pleased to have increased our stake in StoneCo Ltd.," said Samantha Li, Head of Investment Banking at Hsbc Holdings PLC. "StoneCo has been a strong performer in the Brazilian market, and we believe that its innovative digital payment solutions will continue to drive growth in the region."

The transaction was completed through a secondary offering of shares by existing shareholders, and the proceeds were used to purchase additional shares from these sellers. The increase in Hsbc Holdings PLC's stake in StoneCo Ltd. is expected to have a positive impact on both companies, as it will provide additional capital for StoneCo to continue its growth and expansion efforts, while also providing Hsbc Holdings PLC with increased exposure to the Brazilian market.