Nubank, a digital bank operator backed by corporates Tencent and Berkshire Hathaway, filed for a duel initial public offering (IPO) yesterday in the United States and its home country of Brazil.
The IPO involves more than 332 million shares being offered at a proposed maximum price of $11.00 each, potentially equating to over $3.65bn in proceeds and a valuation of approximately $50.6bn.
The company plans to issue just over 289 million shares while its shareholders intend to sell nearly 43.4 million, and to list on both the New York Stock Exchange and the B3 exchange in Brazil.
Founded in 2013, Nubank operates a digital banking platform offers services such as bank accounts, debit and credit cards and is accessible through a mobile app. It almost doubled revenue year on year to $1.06bn in the first nine months of 2021, making a $99.1m net loss in the process.
Singapore’s sovereign wealth fund, GIC, co-led the $400m first close of the company’s series G round with Invesco and Whale Rock in January this year. Sequoia Capital, Ribbit Capital and Dragoneer Investment Group filled out that tranche.
Conglomerate Berkshire Hathaway later led the round’s $750m extension in June, and it also featured Canada Pension Plan Investment Board, Absoluto Partners, Advent’s Sunley House Capital, Sands Capital, MSA Capital and Verde Asset Management.
The company had raised $400m in a mid-2019 round led by growth equity firm TCV, which invested alongside internet and gaming group Tencent, Sequoia Capital, DST Global, Dragoneer, Thrive Capital and Ribbit Capital, after Tencent had provided $180m in 2018.
Nubank had already raised a total of $326m across five rounds, from DST Global, Redpoint Ventures, Ribbit Capital, Founders Fund, Dragoneer, Thrive Capital, QED Investors, Sequoia Capital, Kaszek Ventures, Tiger Global Management and Nicolas Berggruen.
Co-founders David Vélez Osorno and Cristina Helena Zingaretti Junqueira hold a total of 96.9% of Nubank’s 1.15 billion class B shares. Sequoia Capital has 25% of more than 3.16 billion class A shares while DST owns 13.1%, Tencent 8.9% and Tiger Global Management 7.9%.
Morgan Stanley, Goldman Sachs, Citigroup Global Markets and Nu Invest Corretora de Valores are the IPO’s global coordinators. Nu Invest Corretora de Valores will coordinate the Brazilian offering with local affiliates of the three US-based banks.
