Nubank, a Brazilian financial technology company backed by Warren Buffett and Tencent, has become the most valuable financial group in Latin America with an estimate of about $ 50 billion after the initial public offering.
Shares of the digital lender jumped by a quarter when they began trading on Thursday afternoon in New York after raising $ 2.6 billion by selling a minority stake. The transaction ranks as the fifth largest flotation on the U.S. stock market in 2021, according to Dealogic.
David Vélez, founder and CEO, said the revenue will help boost growth in the newest markets of Mexico and Colombia as he wants to become a pan-Latin lender.
“There are many opportunities to build the next generation of financial services, so we will continue to invest and grow for a long time to come,” he told the Financial Times.
Nubanka’s initial market capitalization will be $ 41.5 billion larger than Brazil’s largest traditional bank, Itaú Unibanco, making the start-up founded in 2013 the most valuable listed financial institution on the continent and one of its 10 largest companies.
Debut in the public stock markets of Nu Holdings, the Cayman Islands controlling entity behind the issuance of shares, represents another significant milestone for the region flourishing start-up scene.
Read more at Nubank IPO.