Nubank Shares Rose 15% In Market Debut As Firm Capped $45Bn Valuation
Brazilian fintech Nubank raised $2.6 billion in its IPO and managed to get more than 800,000 investors. Based on the listing price, Nubank has a market value of $41 billion on outstanding shares listed in the U.S. Securities and Exchange Commission.
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As reported by CNBC, Nubank stock began trading at $11.25 a share under the ticker symbol “NU”, higher than Wednesday’s IPO price of $9 apiece. Taking into account employee stock options and restricted stock units, Nubank has a fully diluted value of $44 billion.
Further, the largest fintech company in Latin America sold 289 million shares and became the most valuable listed bank in the region.
CEO David Vélez said: “By focusing on our clients, we work very hard to be true to our mission, in the culture of empowering people, putting our consumers at the center of everything we do and being obsessed with what we can do better —we are now 48 million people believing that there is a better life.”
“The feedback on this IPO from our clients has been incredible, the support has been incredible, people have come to New York to take part. We are proud to have more than 6.5 million people who are now partners through our program and more than 800,000 investors who bought our shares ”, explained co-founder Cristina Junqueira.
The Most Valuable In The Region
Despite its debut on the New York Stock Exchange, the stock cannot yet be traded in U.S. markets. At the moment, the shares that operate on the Stock Exchange are exclusively owned by the investors participating in the IPO.
Nubank explained it will “take the time” to open to the secondary market while the firm adapts to the conditions of the NYSE. The Brazilian company stressed that the date cannot be revealed as it respects the rules of the U.S. financial authorities.
The first week of November, it was announced that Nubank was seeking a valuation of up to $50.6 billion. However, after the transaction, the company reached a market value of $41 billion and a fully diluted value of $ 44 billion.
Even after having lowered its expectations, according to Forbes, the IPO makes Nubank the most valuable financial institution in Latin America surpassing Itaú Unibanco Holding S.A., with a market value of $38 billion.
Updated on Dec 10, 2021, 9:28 am