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Nubank IPO

How to trade on Nubank’s IPO

Sao Paolo-based fintech company Nubank is planning to list on the NYSE before the end of 2021. Find out everything you need to know about parent company Nu Holdings' IPO, including the company’s share price, valuation, and financials, and sign-up to receive an email when Nubank has officially listed.

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FCA regulated
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Segregated funds
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LSE listed

9 December 2021

Nubank’s IPO date

Between $10 and $11

Nubank’s share price

Over $50bn

Nubank’s valuation

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What is Nubank?

Nubank is a Brazilian neo-bank that was founded in 2013 and specialises in digital payments and lending services. The company covers five main financial sectors: spending, savings, investing, borrowing, and protecting, offering products such as personal and business accounts, credit cards, personal loans, and life insurance. Nubank uses Pix, an instant payments system created by Brazil’s Central Bank, which allows customers to make and receive instant transfers, and pay bills and daily purchases anytime through a mobile device.

As of November 2021, Nubank is one of the world’s largest digital banking platforms with over 48 million customers throughout Brazil, Mexico, and Colombia. This is a significant leap from just 1.3 million customers reported back in 2016.

When is Nubank’s IPO date?

Nubank's parent company, Nu Holdings, is expected to list on or after 9 December 2021. This comes at a time when multiple companies are planning an IPO within the fintech sector, including digital payments companies Stripe, Monzo, and Revolut.

Sign up below to join our IPO mailing list and receive a notification for when Nubank has officially listed, along with other upcoming IPOs​ that may be of interest. You can then choose to spread bet or trade CFDs on our derivative of the stock.

What is Nubank’s share price?

Nubank is planning to offer around 289 million shares at a price range of between $10 and $11 apiece. This would raise over $3bn in total for the IPO.

Nu Holdings will list its shares on the New York Stock Exchange using the stock ticker ‘NU’. It will also list Brazilian Depositary Receipts on Sao Paolo’s B3 exchange using the symbol ‘NUBR33’, according to its S-1 filing.

Nubank’s valuation in 2021

The company is expected to be valued at over $50bn, according to Reuters.

This estimation could see Nubank become more valuable than Brazil’s biggest current digital lender, Itaú Unibanco, which has a market capitalisation of around $38bn. It also looks to be one of the biggest IPO listings in the US this year, along with those for Coinbase, Didi, and Coupang.

Nubank was last valued at $30bn after a funding round led by Warren Buffett’s Berkshire Hathaway earlier this year, as reported by the Financial Times, raising $500m in the process.

How to trade on Braze stock

1. Register your interest

Enter your email address into the sign-up box above and we’ll notify you when Nubank has listed on its chosen exchange, along with other approaching IPOs.

2. Sign up for an account

Create a spread betting or CFD trading account to trade on Nubank’s competitors while you wait for our derivative to become live.

3. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Place risk-management controls

We offer a range of stop-loss and take-profit orders, as well as different order types to help protect your capital.

What do Nubank’s financial statements suggest?

In its S-1 filing with the Securities and Exchange Commission (SEC), Nubank reported a nine-month revenue of $1.06bn up to September 2021, which is almost double the figure of the previous year. However, losses also increased from $64.4m in 2020 to $99.1m.

The main source of Nubank’s income comes from interchange fees paid by merchants whenever a customer makes a transaction through the platform, as well as interest on credit card balances. The company is also starting to move into investments.

Please remember that past performance is not indicative of future results.

Trade on competitors of Nubank

Square
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95% of CMC client accounts with open positions on Square expect the price to rise.

Itaú Unibanco
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100% of CMC client accounts with open positions on Itaú Unibanco expect the price to rise.

PayPal
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100% of CMC client accounts with open positions on PayPal expect the price to rise.

Wise
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100% of CMC client accounts with open positions on Wise expect the price to rise.

Client sentiment is provided by CMC Markets for general information only, is historical in nature and is not intended to provide any form of trading or investment advice – it must not form the basis of your trading or investment decisions.

What are some potential positives of a Nubank IPO?

Brazil’s banking sector has come under criticism lately due to large and established companies charging fees for basic services, as reported by the Financial Times. Therefore, this new wave of fintech start-ups in the country that include Nubank, as well as Digio and Cora, could help to revive the industry and even claim existing customers from bigger competitors.

Nubank reported that it has managed to turn a profit in the first half of 2021 for its operations in Brazil. This may increase investor sentiment towards the company as it’s fairly rare that a fintech business starts to make profits before becoming a publicly traded company.

According to Statista, the digital bank was one of the first Brazilian unicorn companies, as well as the first Latin American decacorn start-up. The company welcomes on average 2.1 million new customers per month, signalling potential for growth.

What challenges is Nubank facing?

Several of Nubank’s international competitors are also planning an initial public offering before the end of the year or possibly early 2022. This includes Monzo, Stripe, Starling Bank, and Revolut. This could widen the market and introduce much heavier competition for the Brazilian business.

Although the company is listing on a US-based exchange, Nubank hasn’t announced any plans to expand operations into the US or Europe. Instead, perhaps Nubank is attempting to stamp out US competitors by introducing a Latin American company to the US stock market before the arrival of others, especially as it has a significantly high valuation.

FAQS

Who are the underwriters for Nubank’s IPO?

According to Reuters, the lead underwriters for Nubank’s IPO include financial giants Morgan Stanley, Goldman Sachs, and Citigroup. Read more about the IPO process in detail.

How can I get alerted for Nubank’s IPO?

To stay up to date with news about Nubank’s IPO, register for our IPO mailing list towards the top of the page and we’ll send you an email when the company has listed. You can also set up trading alerts on your desktop or mobile device after creating an account.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

Download our app to trade on IPOs on-the-go

Download our mobile app for iOS or Android to get started. Once Nubank has listed on its US exchange, you will be able to spread bet or trade CFDs on our Nubank share price.

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