Nubank shares jumped on New York’s first trading day

Nubank, a Brazilian fintech company supported by Warren Buffett and Tencent, has become the most valuable financial group in Latin America with a net worth of about $ 50bn after its initial public offering.

Shares in a lost digital lender jumped by a quarter when they started trading Thursday afternoon in New York, raising $ 2.6bn and selling a few. The project is ranked fifth in the US largest market in 2021, according to Dealogic.

David Vélez, founder and CEO, said the proceeds will help grow oil in his new Mexican and Colombian markets as he seeks to become a Latin American lender.

“There are many opportunities to build the next generation of financial services, so we will continue to invest and grow over the long term,” he told the Financial Times.

Nubank’s initial market capitalization of $ 41.5bn was higher than Brazil’s largest bank, Itaú Unibanco, making its debut in 2013 was one of the 10 largest corporations in the world.

The advent of public corporate markets by Nu Holdings, the Cayman Islands that oversee the supply, also represents another important event in the region. the first preview.

The Japanese technical team SoftBank was one of the new sponsors who invested in floating.

Initially issuing credit cards without annual payments, a team from São Paulo has recruited more than 48m users of its mobile services.

Today, it offers savings accounts, business loans, insurance and consumer goods in three countries in a region where millions of people have been displaced economically.

The proposed price of $ 9 per share was above what Nubank intended to do, a deal that would provide encouragement to investors after the IPO market downturn in recent weeks. A fintech last week cut prices starting at $ 10- $ 11.

The share price of the company rose to $ 12 per share when trading started on Thursday, before returning to close to $ 10.44.

The year 2021 has been breaking history on the list in the US, but the environment has deteriorated in the past few weeks as global markets have been disrupted due to uncertainty over the evolution of Omicron coronavirus and strong monetary policy.

Vélez said Nubank was exposed to market risk because it made two lists. The company also sold Brazilian savings receipts at São Paulo’s B3 course, each of which has a one-sixth share, which requires a price announcement already made.

“According to the business, it would make sense to just list the US,” Vélez said, but added that it would be like “a slap in the face. [Brazilian] customers who always want to participate “.

Nubank revenues increased year on year to $ 1.1bn in the first nine months of 2021, but total losses were further increased from $ 64.4m to $ 99.1m.

Vélez said the big corporate business in Brazil was already profitable but declined to say when the entire party should disrupt it, saying it would “continue to revive economic growth as long as we make a profit”.

The Colombian-born official said there were no plans to enter the country, with Douglas Leone, a friend of US venture capital firm Sequoia and a member of Nubank, saying the bank would focus on growing outside Latin America.