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At that valuation, the Sao Paulo-based fintech, backed by Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) Inc, is only behind commodities players Petrobras and Vale.
On Wednesday, Nubank priced its IPO at the top end of a range it had lowered earlier due to concerns over a global rout in technology stocks, to raise nearly $2.6 billion. The offer was eight times oversubscribed, one source with knowledge of the matter said.
The company’s flotation comes as a record year for U.S. listings draws to a close, with several heavyweights like Coinbase (NASDAQ:COIN) and Robinhood (NASDAQ:HOOD) having gone public this year.
Nubank said it had turned a profit in the first half of 2021 in its Brazilian operations. Founder and Chief Executive Officer David Velez said the company will stay focused on three markets – Brazil, Mexico and Colombia.
“A lot of the capital that we’re raising in this IPO is for Colombia and Mexico. And so we will continue to just invest behind that growth opportunity,” Velez said in an interview with Reuters.
In a filing late last month, the company had also said affiliates of Sequoia Capital, Tiger Global Management, SoftBank Latin America Funds, and others were expected to anchor the IPO and buy shares worth at least $1.3 billion.
Having become one of Brazil’s biggest credit card issuers, Nubank has pioneered products that have spawned off a fierce race among competitors to offer similar services and grab a bigger slice of the consumer finance market.
The company’s stock opened at $11.25 per share, compared with the initial public offering price of $9 per share.
Morgan Stanley (NYSE:MS), Goldman Sachs & Co (NYSE:GS), Citigroup (NYSE:C) and NuInvest are the lead underwriters for the offering.
