IPO-pedia | Buffett-Backed Fintech Nubank Files for U.S. IPO

Brazilian digital bank Nubank recently lifted the veil off its filing for an initial public offering in the United States. The company plans to dual list on the B3 Brazil under the symbol "NUBR33."

Morgan Stanley, Goldman Sachs, Citi, Nu Invest, Allen & Company, HSBC, and UBS Investment Bank are the joint bookrunners on the deal.

Nu Holdings, founded in 2013, is a Brazilian digital bank backed by billionaire Warren Buffett’s Berkshire Hathaway.

It is seeking a valuation of as much as $50.6 billion in its initial public offering, making it one of Latin America’s biggest companies.

NuBank is one of the world’s largest digital banking platforms (based on number of customers) and the latest of several fast-growing financial services companies - often serving customers overlooked by banks - grabbing investors' attention.

As of September 30, 2021, It had 48.1 million customers,across Brazil, Mexico and Colombia, including approximately 28% of the population of Brazil aged 15 and above.

According to a ranking by CBInsights, Nubank is the 7th most valuable unicorn worldwide, behind fintechs Stripe, Klarna and Revolut.

It is listed in 2021 by TIME as one of the 100 Most Influential Companies in the world and by CNBC as one of the Top 50 Disruptors in the world.

In the nine month periods ended September 30, 2021, it reported total revenue of US$1,062.1 million, an increase of 98.7% compared to US$534.6 million for the nine month periods ended September 30, 2020.

Though it has incurred a US$99.1 million loss for the nine months ended September 30, 2021, and a US$171.5 million, US$92.5 million and US$28.6 million loss for the years ended December 31, 2020, 2019 and 2018, respectively, it has grown the customer base and revenue at high annual growth rates.

As of September 30, 2021, it had 48.1 million customers, which represents an increase of almost 9x from 5.2 million as of September 30, 2018 (or a compounded annual growth rate, or “CAGR,” of 110%.