Nubank is aiming for a valuation of 50.6 billion US dollars undefined


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Nubank plans to trade on both the New York Stock Exchange and the São Paulo Stock Exchange.

Dream time

Brazilian digital lender Nubank is going public in a big way, joining electric truck maker Rivian in the club of high profile IPOs this month.

Nubank is proposing to offer 289.2 million Class A common shares, including Brazilian Depositary Receipts, or BDRs, at a price of $ 10-11. according to the prospectus filed with the Securities and Exchange Commission on Monday. Each BDR represents 1/16 of a common share.

The fintech plans to trade both on the New York Stock Exchange under the ticker NU and on the São Paulo Stock Exchange under the symbol NUBR33.

At $ 11 per share, Nubank is targeting a valuation of $ 50.6 billion – slightly less than Rivian, which is targeting a valuation of about $ 60 billion. Rivian is slated to price its offering on November 9th and begin trading the next day. Barrons has called.

Nubank did not immediately respond to requests for comment.

Nubank’s IPO is not yet planned, said a person familiar with the situation. A company has to wait 15 days after its prospectus is published for an IPO before starting a roadshow. Within that timeframe, Nubank could start trading later in November.

Morgan Stanley,

Goldman Sachs

City group

and NuInvest are leading underwriters in the IPO.

Founded in 2013, Nubank began issuing credit cards with no annual fees. Today it also offers debit cards, bank accounts, loans, and life insurance. The company describes itself as one of the largest digital banking platforms with 48.1 million customers in Brazil, Mexico and Colombia (as of September 30). Of the 48.1 million, more than 70% are under 40 and around 28% are Brazilians aged 15 or over, was in the prospectus.

Nubank, with its operational headquarters in São Paulo, is one of the most valuable fintechs in Latin America. The lender gets much of their income from the interbank fees they collect when a customer uses a Nu credit card to make a purchase and from the interest they get on Nu credit card balances.

However, fintech is not profitable. Losses rose to $ 99.1 million for the nine months ended September 30, compared to $ 64.4 million for the same period in 2020. Revenue doubled from $ 534.6 million as of the same time last year to $ 1 billion.

The Brazilian start-up has raised $ 2.3 billion in funding. Crunchbase said. this includes $ 500 million from Warren Buffett’s Berkshire Hathaway (Ticker: BRK. A and BRK. B), who invested in Nubank in June. At the time, Nubank was valued at $ 30 billion, according to The Wall Street Journal.

David Vélez Osorno, founder and CEO of Nubank, will have 75% of the total voting rights after the IPO, according to the prospectus.

Write to Luisa Beltran at [email protected]

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