or a digital bank nubank It priced its shares Wednesday (8) at $9 per share, in an initial public offering (IPO) on the New York Stock Exchange.
Created eight years ago to offer a free credit card, Nubank has become the most valuable bank on the listed stock exchange in Latin America, with a value of 41.5 billion US dollars (about 230 billion Brazilian reals), ahead of Itaú Unibanco.
A picture of the Nubank logo at the bank’s headquarters in Sao Paulo – Photo: Paulo Whitaker/Reuters
Nubank disclosed the prices in a document it sent to the Securities and Exchange Commission (SEC) ahead of its first public offering on Thursday (9). The IPO is seen as an indication of investor appetite for financial technology in emerging markets.
A successful debut could pave the way for many other startups, including in Latin America, for a stock listing, while a poor reception could cause many to delay their plans.
Last week, Nubank decided to cut the valuation of its initial public offering by 20% after facing weak demand from cautious investors with unprofitable fintech companies for banks.
In addition to lowering its valuation, Nubank has also raised some major investors with an appetite to buy at least $1.3 billion in stock, including existing partners such as Sequoia and Tiger Global, and new partners such as Latin America’s SoftBank.
The Nubank IPO also highlights how fintech companies are approaching physical banks in the highly concentrated banking landscape in Latin America.
Likes Risbaldo da Berkshire Hathaway, d Warren BuffettAnd Tencent Holdings and Sequoia, among others, Nubank plans to use the funds for working capital, capital and operating expenses as well as acquisitions.
The president and founder of the bank, David Velez, a Colombian who graduated from Stanford, decided to get into financial products in Latin America after noticing the bureaucracy of opening a checking account in Brazil. Fintech currently has 48 million clients in Brazil, Mexico and Colombia.
David Velez, founder of Nubank – Photo: Fabio Tito / G1
Morgan Stanley, Goldman Sachs, Citigroup and NuInvest are leading the show as global coordinators.
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