XP Investimentos, the fast-growing Brazilian financial supermarket, has mandated JP Morgan, Goldman Sachs and Morgan Stanley as bookrunners for its IPO, the first formal step towards the year’s most anticipated deal involving a Brazilian company, sources familiar with the matter told Brazil Journal.  XP’s securities division will also join the syndicate of banks.

According to these sources, the company has not yet decided between the New York Stock Exchange or Nasdaq, but it has already settled on the calendar: the goal is for the offering to be priced in mid-December or late January 2020.

The offering should be mostly primary — according to one source, the breakdown is at 80-20 at this point — and XP is expected to make a confidential filing with the SEC in the coming days.

More than 10 banks participated in the pitch to coordinate the offer. According to people involved in those discussions, XP should be compared to companies whose revenues grow more than 30 percent a year, have more than US$ 10 billion in market value, generate net income and have a disruptive business model. In other words: the firm is looking to be valued like lucrative fintechs like Square, Shopify and MercadoLivre.

Banks that have had access to the numbers say XP is expected to post a net profit of BRL 1 billion in 2019 (more than double the previous year) and its assets under custody already exceed BRL 300 billion. The company has publicly stated a target of BRL 1 trillion in assets under custody by the end of 2020.

In 2017, when Brazilian bank Itaú Unibanco bought 49% of XP, it valued the company at BRL 12.6 billion on a post-money basis. Now, a multiple of 30 times over a BRL 2 billion 2020 profit could value the company at BRL 60 billion in the IPO.

For comparison, the four largest publicly listed Brazilian banks — those whose business model XP works to disrupt — have a combined market value of about BRL 850 billion.

XP declined to confirm the information alleging it has started its quiet period.