O Nubank is targeting a market cap of more than $50 billion for its IPO in USA, which would make the digital bank more valuable than the largest Brazilian bank, Itaú Unibanco.
Sao Paulo-based fintech, which was last valued at $30 billion after a financing round led by Warren Buffett’s Berkshire Hathaway, is expected to list its shares by year-end.
Last week, the Nubank said it submitted confidential application for its IPO for US regulators.
In a document to the regulator on Monday (1), Nubank said it planned to sell about 289 million shares to raise another $3 billion in its IPO. Nubank has set a price range between $10 and $11 per share.
At that size, the IPO will rank as one of the biggest of the year in the United States, alongside offers from e-commerce company Coupang, Chinese app transport company Didi Global and chip maker GlobalFoundries.
If Nubank guarantees the valuation it aims for in its IPO, it will also exceed the Itaú Unibanco, which currently has a market value of over US$38 billion.
In its most recent document, Nubank has opened its finances for the first time, revealing a huge leap in growth – its revenue has nearly doubled to $1.06 billion in the nine months ended Sept. 30. The loss in the same period, however, increased from $64.4 million to $99.1 million.
Nubank makes money primarily through fees paid by merchants whenever a customer makes a transaction. In October, fintech said it managed to make a profit in the first half of 2021 in its operations in Brazil.
Founded in 2013 by David Vélez, a Colombian who studied at Stanford, Nubank began as a credit card issuer that did not charge any annual fees.
Since then, the bank has gained more than 48 million customers and launched products, including checking accounts and loans.
After the IPO, co-founders Vélez, Cristina Junqueira and Adam Edward Wible will hold 87% of the voting power and 25% of the company’s outstanding shares, as long as underwriters do not exercise the so-called “greenshoe”, which allows companies to sell shares. additional to buyers during a IPO.
Nubank will list its shares on the New York Stock Exchange under the symbol “NU” and its BDRs on B3 under the symbol “NUBR33”.
Morgan Stanley, Goldman Sachs, Citigroup and NuInvest are the main coordinators of the offering.
Reference: CNN Brasil
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