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.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

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.