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Nubank Seeks Dual Listing in US and Brazil at $50.8B Valuation

Brazilian digital bank Nu Holdings, simply known as Nubank, is on track to conduct a dual listing in both the United States of America and Brazil. According to a filing with the US Securities and Exchange Commission (SEC), Nubank is set to offer 289 million shares at a price range of $10 to $11 each.

At the upper end of the share pricing, the company is going to make its public debut as one of the most valuable firms in South America with a $50.8 billion market capitalization. For the IPO, Nubank seeks to raise about $3 billion from investors, a figure that will position it as the third most valuable IPO in the US in 2021. The company plans to go public on the New York Stock Exchange (NYSE) under the ticker symbol ‘NU’. Morgan Stanley (NYSE: MS), Goldman Sachs Group Inc (NYSE: GS), and Citigroup Inc (NYSE: C) are amongst the Underwriters or managers for the Nubank IPO.

While the company is planning to go public in the US, it also has the plan to offer Brazilian Depositary Receipts, known as BDRs, with arrangements for trading on the Sao Paulo Stock Exchange. These BDRs will represent ⅙ of Class A Ordinary Share and the company has plans to hand out BDRs to its clients as a form of incentive.

Public Listing Showcases Nubank by the Numbers

Nubank was founded back in 2013 and has grown into an iconic fintech outfit that is bolstering the financial system of countries in Latin America including Brazil, Colombia, and Mexico amongst others. The proposed public listing of Nubank has given a deep peek into the company’s growth as it revealed it has over 48.1 million across the countries it operates in.

While its valuation is billed to soar above the legacy banks it is competing with, Nubank notably lags behind in terms of profitability. Per the data contained in the prospectus filed, the firm lost about $99.1 million dollars from January to September. The company is also not optimistic of positive profit overturn in the short term due to its dogged quest for expansion.

The company is being backed by industry heavyweights including Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRK.A) who injected $500 million in the firm back in June 2020. Amongst the other prominent investors include Sequoia Capital which invested the sum of $1 million in the company when it raised its seed round back in 2013.

Despite the high profitability of these early investors as Nubank seeks a public IPO, founder, and chief executive officer David Velez will remain the majority shareholder in the company with total stakes worth $10.4 billion at the average price of the IPO share range. Velez will also control the majority voting rights in the Nubank board post listing.

Subject to regulatory approval, Nubank is on track to list on December 8.

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Nubank Seeks Dual Listing in US and Brazil at $50.8B Valuation