For Brazilian shareholders, Nubank’s IPO has a bitter aftertaste • TechCrunch

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In 2021, we wondered if Brazil could benefit from an IPO windfall. That hasn’t happened: Not only is Latin America’s largest economy going through the same IPO drought as the rest of the world, but one of its most prominent public listings, Nubank, is nearing its sudden end. Let’s explore. — Anna

What does it mean?

Nubank is one of the preeminent neobanks in Latin America. So when its parent company, Nu Holdings, decided to go public with a dual listing in New York and São Paulo, the deal was one of the most anticipated exits of 2021 among watchers in Brazil and fintech. .

There have been a few bumps in Nubank’s road to IPO – for example, when it repriced its shares from $11 to $9 ahead of its exit. But the fact that its December 9 debut went well and that its market capitalization, although declining, did not fall either, could be considered a relative success.

Fast forward to last week, when surprising news emerged: “Nubank to withdraw from Brazilian stock exchange B3”, a headline from Bloomberg Línea Lily. There are more nuances to this: As the article detailed, the fintech company will actually “restructure its Brazilian certificates of deposit (RDB) program with transition from Level III to Level I.” Confused? You’re not alone.

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