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Nubank Goes Public As the Most Traded Bank in LatAm

The digital bank debuted with a market value of $41.5 billion in the New York Stock Exchange and its focus will continue to be Brazil, Mexico, and Colombia

Don't worry, we speak : Español (Spanish), too!

In October, Nubank announced its Initial Public Offering (IPO), and today it already rang the bells of the New York Stock Exchange, trading its shares at US$9, making it the most traded bank in Latin America.

On its first day on Wall Street, Nubank debuted with a market value of US$41.5 billion. This was less than the expected amount of US$50.6 billion, since last week it reduced its projection for the IPO by 20% due to the drop in investor demand. 

Despite this, Nubank has surpassed the amount of other financial institutions in the region, such as Itaú Unibanco, which is the largest bank in the region and whose market value reaches US$37.7 billion.

Nubank, which currently operates in Brazil, Mexico and Colombia with 48 million customers, reached New York with the sale of 289 million shares. This allowed them to raise US$2.6 billion.

The financial company is already gathering some investors such as SoftBank Latin America, Sequoia, and Tiger Global. With these, they aim to acquire at least US$1.3 billion in shares. The IPO is led by Morgan Stanley, Goldman Sachs, Citigroup, and NuInvest.

To celebrate its arrival to Wall Street, David Velez, CEO of Nubank, said in a press conference that they would give a share to each of their clients. They also celebrated by coloring different monuments in Brazil, Mexico, and Colombia in purple, as well as with a sign in the sky.

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Nubank Will Continue To Seek Capital To Grow

After Nubank’s IPO on the New York Stock Exchange, Catalina Breton – NU’s CEO in Colombia – told the press: “We see the IPO as a starting point. We want to challenge banking with all the technology we bring and reinvent the future of financial services”.

She emphasized that although it is a Latin American company, each country has its own needs. 

However, both she and Emilio González, NU’s CEO in Mexico, agreed that Nubank is an opportunity to break generational and gender gaps in financial matters. They always aim to offer services that go beyond the traditional ones. 

Breton mentioned that Colombia is a country of 50 million people, of which 32 million have access to financial services. 

But there are gaps in this figure. Young people are 13 points behind the rest of the population in the acquisition of these services, and women are 14 points behind men.

Gonzalez pointed out that in Mexico, before Nubank arrived, six players held 80% of the market, showing a low supply of services.

In fact, in this country, Nubank has grown substantially. As of September it was the largest card issuer in Mexico, said the CEO. So far they have issued 760,000 cards, of which 380,000 were issued in the third quarter of 2021 alone. 

Executives stated that for the time being there are no expansion plans. “The idea is to have access to more capital to continue growing and increase the products in these three countries [Brazil, Mexico, and Colombia] since they concentrate 60% of the population of Latin America and 60% of the region’s GDP, so we will continue to focus on them,” Breton concluded.

Its next step is the IPO on the Brazilian Stock Exchange, which is scheduled for December 10.

You may be interested: Nubank files to launch IPO on U.S. and Brazilian stock exchanges

Sandra Pérez
Periodista de tecnología y negocios basada en México. Escribí para Fortune en Español y Muy Interesante.

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