Nu Holdings Set For Massive IPO Soon: What's Its IPO Date and Price?
Fintech Nu Holdings, which aims to disrupt the financial service industry in Latin America, is going public to raise up to $3 billion.
Nov. 17 2021, Published 10:18 a.m. ET
Nu Holdings, a digital banking platform serving Brazil, Mexico, and Columbia, is nearing its IPO date. The company, based in the Cayman Islands, operates banking companies such as Brazil’s Nubank. It's planning to raise up to $3 billion in its IPO, according to Renaissance Capital.
The fintech company focuses on digital financial services and says it works with 48.1 million customers across its three nations of availability. Nu Holdings was founded in 2013 and is planning on a dual listing, both on the B3 Brazil exchange and the NYSE. How much is the Nu Holdings IPO expected to raise in capital?
Nu Holdings' IPO date and price
The fintech platform plans to offer 289.2 million shares in its IPO, with some of those shares in the form of BDRs (Brazilian depositary receipts). Nu Holdings is stock is expected to be priced between $10 and $11. The midpoint of that proposed price range would give the company a fully diluted market value of $50.8 billion. As of now, NU's official IPO date hasn’t been announced.
Nubank CEO David Vélez Osorno.
Nu Holdings stock symbols in dual listing
As the company is planning on a dual listing on both the Brazilian exchange and the NYSE, it will have two ticker symbols for trading. On the NYSE, the fintech company will be listed as “NU”, and on the B3 Brazil exchange, as “NUBR33”.
A portion of Nu Holdings’ IPO is intended to be raised through BDRs. Each of those shares will represent one-sixth of an underlying ordinary share. The BDRs are to raise $3.04 billion in gross proceeds, according to Seeking Alpha.
Nu Holdings' valuation
The first digital-native banking platform in Latin America, Nu Holdings provides credit cards, mobile payments, investing services, and savings and business accounts. Founder, chairman, and CEO David Vélez Osorno was previously a partner with Sequoia Capital.
Assuming a successful IPO, Nu Holdings could command an enterprise value of about $46.5 billion, excluding the effects of underwriter over-allotment options. Its fully diluted market value could be $50.8 billion at the midpoint of the $10–$11 price range.
Nu Holdings IPO underwriters
The joint bookrunners for the Nu Holdings IPO are Morgan Stanley, Goldman Sachs, Citi, Nu Invest, Allen & Company, HSBC, and UBS Investment Bank.
NU's investors, revenue, and growth
NU has raised $2.3 billion over the years from investors including Tencent, DST Global, Goldman Sachs, Tiger Global Management, Whale Rock Capital Management, and Berkshire Hathaway. The company had $1.3 billion in revenue for the 12 months ended Sept. 30, 2021. According to IPOScoop, Nu Holdings expects the financial service market in Latin America to reach $1 trillion in 2021.
The company intends to reach people who are unbanked or underbanked in those areas. TIME named Nu Holdings one of the 100 most influential companies worldwide. It also placed 40th on the 2021 CNBC Disruptor 50 List.