Nubank has become the star child in the fintech world. Hailing from Brazil the company rose to become the star in the fintech world within a short period.
Now fintech is coming up with an IPO in New York and Brazil. This dual listing would give the company a value of $41.5 bn.
This would make the company the most valuable digital bank in the world and the largest financial institution in Latin America.
This year saw the arrival of many high-profile fintech listings from Robinhood to Coinbase.
But the arrival of Nubank will be an astronomical one. The fintech industry has grown at an exponential rate this year due to the pandemic and digitization process.
Nubank has attracted quite a lot of investors from within and outside Latin America. The prominent investors range from Sequoia Capital to Berkshire Hathaway and Goldman Sachs.
Among them, Warren Buffet is the most interested in the company. That is why he invested $500mn in the company in June 2021. As per VC funding round valuations, the company is rivalled only by Revolut, a London based fintech.
The company began their step by submitting the paper works in late October on NYSE. The IPO debut is set to take place before the year-end. The help of Warren Buffet seems to be a success because after it the company hit the valuation of $30 billion.
The uncertainty in the market caused the company to lower their target from $50 billion to $41.5 billion.
But the company’s sustained growth means that Buffet’s investment would be doubled, as the conditions are becoming more favourable and they hold their growth rate.
The fintech through its dual listing wishes to raise to $3.2 billion, distributing 289 million shares with a price of $8 and $9. That would give the company a value of $50 billion. For the listing, they will have underwritings by major financial players.
In the recent round of funding, the company attained a value of $29.3 billion, more than the $9.6 billion valuations it attained in 2019. This company is just $10 billion short of value from Latin America’s largest financial institution, Itaú Unibanco.
As of now, traditional financial institutions doesn’t seem to be a major challenger for this company. The challenge comes from this field of fintech.
The fintech sector seems to have exploded since the pandemic, as the world started to move towards the digital world.
The informality of the sector and the cyber environment makes people prefer this sector, which led to more and more people venturing into this field.
But IPO hopes should not be set high as the other similar cases have slowed down in the market. But these were affected by cryptocurrencies speculations and regulation threats. Nubank has no such threat.
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