Nubank, a Brazilian financial technology company backed by Warren Buffett and Tencent, has achieved an initial public offering in New York with a valuation of over $ 40 billion.
Losing digital lenders will open trading on Thursday after raising $ 2.6 billion in the sale of a minority stake. According to Dealogic, the deal is ranked as the fifth largest flotation on the US stock market in 2021.
Founder and CEO David Vélez said revenues will help drive growth in the latest markets in Mexico and Colombia, which aim to be lenders across Latin America.
“We have a lot of opportunities to build next-generation financial services, so we will continue to invest and grow for a very long time,” he told the Financial Times.
Nubank’s initial market capitalization will be $ 41.5 billion Higher than Brazil’s largest traditional bank, Itaú Unibanco, a startup founded in 2013, makes it the most valuable listed financial institution on the continent.
The debut in the public equity market by Nu Holdings, the controlling body of the Cayman Islands behind the issuance of shares, represents another important milestone in the region. A booming startup scene..
Softbank, a Japanese technology conglomerate, was one of the new backers invested in Float.
The São Paulo-based group initially offers credit cards with no annual fee, attracting more than 48 million users of mobile app-based services.
Today, we offer savings, business loans, insurance and investment products in three countries where tens of millions have been excluded from mainstream financial products.
The $ 9 per share offer price was the upper limit of Nubank’s final target range. This is a deal that gives investors some peace of mind after the slowdown in the IPO market over the last few weeks. FinTech lowered its original price range from $ 10 to $ 11 last week.
2021 Record-breaking year However, the environment has deteriorated in recent weeks as uncertainties about variants of the Omicron coronavirus and monetary tightening policies have disrupted the global stock market.
Mr. Beres said Nubank was exposed to more market risk as it undertook a dual-listing process. The company also sold Brazilian depositary receipts on the B3 Stock Exchange in São Paulo. Each was worth one-sixth and required early target price announcements.
“From an investor’s point of view, listing in the United States would make sense,” said Beres, who said it was ” [Brazilian] Customers who always want to participate “
Nubank’s revenue doubled year-on-year to $ 1.1 billion in the first nine months of 2021, while net losses also increased from $ 64.4 million to $ 99.1 million.
The company’s core Brazilian business is already profitable, but “we will continue to reinvest in growth as long as we expect profitable growth,” said Beres, a break-even goal for the broader group. Did not reveal the day.
The Colombian-born chief said Douglas Leone, a partner of US venture capital firm Sequoia and a member of Nubank’s board of directors, would eventually consider expanding outside Latin America. He said he had no plans to enter these countries.
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