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December 1, 2021

Nubank slashes US IPO price; now seeks valuation of $41.5bn

Brazilian digital lender Nubank has slashed the target price of its US initial public offering, which would value the bank over $40bn.

Earlier, the lender had planned to raise nearly $3bn via its IPO at a valuation of $50bn.

In the updated filing, Nubank said it now plans to sell 289.2 million shares priced between $8 and $9 each. At the top end, the IPO would fetch the company $2.6bn at a valuation of $41.5bn.

The lender stated that it has reduced the price range of its IPO to meet the current market conditions.

Even at the lower end of the price bracket, Nubank will stay ahead of the country’s established traditional lender Itau Unibanco Holding in terms of valuation.

Nubank stated that affiliates of investors such as Tiger Global Management, JP Morgan, Counterpoint Global, SoftBank Latin America Funds and Sequoia Capital among others have shown interest in purchasing shares worth $1.3bn.

Nubank will use the proceeds for general corporate purposes, including working capital, operating expenses, and capital expenditures.

Additionally, it may use a portion of the funds raised to acquire or invest in businesses, products, services, or technologies.

Founded in 2013, Nubank is backed by the likes of Warren Buffett’s Berkshire Hathaway, Sequoia, Tencent, Dragoneer and Ribbit.

In June this year, it raised $500m from Berkshire Hathaway as part of its Series G extension.

Nubank has operations in Brazil, Colombia, and Mexico and its current valuation stand at $30bn.

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