Brazilian fintech heavyweight Nubank valued at $52 billion in strong debut on NYSE

David Velez, Founder and CEO of Nubank gives an interview on the New York Stock Exchange
David Velez, Founder and CEO of Nubank, a Brazilian FinTech startup, gives an interview on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., today. December 9, 2021. REUTERS / Brendan McDermid

December 9, 2021

(Reuters) – Shares of digital lender Nubank jumped 25% from its asking price in its stock market debut on Thursday, giving the company a market capitalization of nearly $52 billion. , becoming the third most valuable listed company in Brazil.

At that valuation, the Sao Paulo-based fintech, backed by Warren Buffett’s Berkshire Hathaway Inc, is second only to commodity companies Petrobras and Vale.

On Wednesday, Nubank valued its IPO at the top end of a range it had previously lowered on concerns about the global trend in tech stocks, to raise nearly $2.6 billion. A source with knowledge of the matter said the offer was oversubscribed eight times.

The company’s popularity came as a record year for listings in the United States ended, with several heavyweights like Coinbase and Robinhood already listing this year.

Nubank said it was profitable in the first half of 2021 in its Brazil operations. Founder and CEO David Velez said the company will focus on three markets – Brazil, Mexico and Colombia.

“A lot of the capital we raised in this IPO is for Colombia and Mexico. And so we will continue to invest only after that growth opportunity,” Velez said in an interview with Reuters.

In a filing late last month, the company also said affiliates of Sequoia Capital, Tiger Global Management, SoftBank Latin America Funds, and others are expected to conduct IPOs and buy shares worth little at least 1.3 billion USD.

Becoming one of Brazil’s largest credit card issuers, Nubank pioneered products that created a fierce race among competitors to offer similar services and take a large share of the market. in the consumer finance market.

The company’s shares opened at $11.25 per share, compared with its initial public offering price of $9 per share.

Morgan Stanley, Goldman Sachs & Co, Citigroup and NuInvest are the main underwriters of the offering.

(Reporting by Niket Nishant in Bengaluru, Carolina Mandl and Tatiana Bautzer in Sao Paulo, Echo Wang in Taos, New Mexico; Editing by Krishna Chandra Eluri and Shailesh Kuber) Brazilian fintech heavyweight Nubank valued at $52 billion in strong debut on NYSE

Bobby Allyn

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