Nubank to Lower Price Range for Its Planned IPO

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Abstract：The Brazilian firm will look for an implied market capitalization of $41.5 billion.

　　Nubank to Lower Price Range for Its Planned IPO

　　The Brazilian firm will look for an implied market capitalization of $41.5 billion.

　　Nubank, a Brazilian fintech, is now aiming for a valuation lower than the originally outlined, as the firm is looking to sell shares at between $8 and $9 each on its planned initial public offering. According to the Financial Times, Nubank will look for an implied market capitalization of $41.5 billion as it seeks to raise $2.6 billion.

　　Although the valuation is lower than the prior numbers set by the company, it would even be higher than Itaú Unibanco, Brazil‘s biggest traditional lender. That said, Nubank’s forthcoming IPO could be among the top-ten US flotations.

　　Overall, the banks revenues doubled to $1.06 billion in the first nine months of the year. Also, its net losses expanded to $99.1 million during the same period compared with the $64.4 million figure seen last year, although it recorded most of its profits coming from Brazil.

　　“Nubank said that a number of cornerstone investors, including Japans SoftBank, had indicated an interest in purchasing at least $1.3bn worth of stock in the IPO. The company plans to sell 289.2m shares, with an overallotment option of 28.6m. The lead underwriters are Morgan Stanley, Goldman Sachs, Citigroup, and NuInvest,” the Financial Times noted.

　　Getnet Brazil in Sao Paulo Stock Exchange

　　Last month, the Spanish bank Banco Santander SA announced that Getnet Brazil, its merchant payment business, will begin trading on the B3 stock exchange in Sao Paulo. Afterward, the company started to trade on the Nasdaq stock exchange in New York on October 22. The trading on the Nasdaq stock exchange will be done in a ‘regular way.’ With the maneuver, Getnet Brazil expects to leverage the full potential of its business by diversifying the revenue sources.

　　The company is part of Santander Groups plans to create a global merchant acquiring franchise under the Getnet brand as part of the global payment fintech, PagoNxt. “This strategic step will enable Getnet Brazil to unlock the full potential of its businesses as part of PagoNxt. Getnet Brazil will be part of a global platform, where we will leverage key capabilities, products, value-added services and state-of-the-art platform technology and architecture,” Pedro Coutinho, CEO of Getnet Brazil, commented at that time.