Nubank, a Brazil-based digital bank operator backed by corporates Tencent and Berkshire Hathaway, announced yesterday it has confidentially filed a draft registration for an initial public offering (IPO).
Nubank’s holding entity, Nu Holdings, made the submission to the US Securities and Exchange Commission (SEC) along with a similar filing with Brazil’s securities commission, Comissão de Valores Mobiliários.
Founded in 2013, Nubank provides a digital banking platform that offers services like bank accounts and debit and credit cards, all available through a mobile app. It has not yet indicated an IPO target or what it plans to do with the proceeds.
According to Bloomberg, the offering is expected to take place on the New York Stock Exchange in December 2021 and could potentially value the company at over $50bn, while Morgan Stanley, Goldman Sachs, Citigroup and UBS will be among the underwriters.
The company raised $400m in the first tranche of its series G round, in January this year. It was co-led Singapore’s sovereign wealth fund GIC, Whale Rock and Invesco while Sequoia Capital, Ribbit Capital and Dragoneer Investment Group filled out the investors.
Berkshire Hathaway led a $750m extension to the round in June at a post-money valuation of $30bn, investing alongside Canada Pension Plan Investment Board, Absoluto Partners, Advent’s Sunley House Capital, Sands Capital, MSA Capital and Verde Asset Management.
Nubank previously secured $400m in a mid-2019 series F round led by growth equity firm TCV that also featured featuring internet and gaming group Tencent, Sequoia Capital, DST Global, Dragoneer, Thrive Capital and Ribbit Capital.
Tencent had invested $180m in the company the previous year at a reported valuation of $4bn. It had previously raised a total of $326m from DST Global, Redpoint Ventures, Ribbit Capital, Founders Fund, Dragoneer, Thrive Capital, QED Investors, Sequoia Capital, Kaszek Ventures, Tiger Global Management and Nicolas Berggruen across five rounds.
