Brazil’s Nubank slashes IPO valuation to over $40 billion By Reuters
© Reuters. FILE PHOTO: The logo of Nubank, a Brazilian fintech startup, is pictured at the bank’s headquarters in Sao Paulo, Brazil June 19, 2018. REUTERS/Paulo Whitaker/File Photo
(Reuters) – Nubank on Tuesday cut the expected price range of its U.S. initial public offering, reducing the Brazilian online lender’s targeted valuation by nearly $10 billion to up to $41.5 billion.
In an amended filing with the U.S. Securities and Exchange Commission, the Sao Paulo-based company said it would now be looking to sell about 289.2 million shares priced between $8 and $9 each. It would raise $2.6 billion at the top end of the range.
Nubank had earlier planned to raise nearly $3 billion at a valuation of over $50 billion by selling shares at between $10 and $11 each.
The IPO market in the United States has been strong this year, but the detection of a possibly vaccine-resistant variant of the coronavirus sparked a broad selloff on Friday.
Markets have since eased as investors await more details on the variant, Omicron.
Morgan Stanley (NYSE:), Goldman Sachs (NYSE:), Citigroup (NYSE:) and NuInvest are the lead underwriters for Nubank’s offering.
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