Digital bank Nubank priced its Class A shares Wednesday at $9 per share in an initial public offering (IPO) on the New York Stock Exchange that classified them as The largest listed bank in Latin America.
Created eight years ago to offer a free credit card, Nubank has become the most valuable bank in the region, at $41.5 billion, ahead of the Itaú Unibanco.
Nubank disclosed the rates in a document it sent to the Securities and Exchange Commission (SEC) ahead of its first public offering on Thursday. The IPO is seen as an indication of investor appetite for financial technology in emerging markets.
One successful appearance can pave the way for more Startups, including from Latin America, list stocks, while poor reception may 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 for at least $1.3 billion in stock, including existing partners such as Sequoia and Tiger Global, and new partners such as SoftBank Latin America.
The Nubank IPO also highlights how fintech companies are approaching physical banks in the highly concentrated banking landscape in Latin America.
Backed by Berkshire Hathaway, Warren Buffett, Tencent Holdings and Sequoia, among others, Nubank plans to use the funds for working capital, operating expenses and capital as well as for 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.
Morgan Stanley, Goldman Sachs, Citigroup and NuInvest are leading the show as global coordinators.
“Friendly zombie guru. Avid pop culture scholar. Freelance travel geek. Wannabe troublemaker. Coffee specialist.”
