January 27, 2022

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Justin Lane/EFE - 9/12/2021

Nubank IPO: Bank shares closed 14.54% at the Brazilian stock market debut – Economy

the nubank Finished his first week on the stock exchange already being part of the UAE’s most valuable group of companies Latin america. The company’s shares closed the trading session on Friday, the tenth, with a 14.71% increase, with a value of $11.85. Nova York. employment Brazilian Stock Exchange (B3), Leaves nubank Trading started on Friday in the form of BDRs (Out-of-State Listed Share Certificates)And closed up 14.54%, 11.50 Brazilian reals, in its first appearance.

During the trading session on B3, Nubank shares were auctioned with the maximum permissible volatility (above 10%). Other Brazilian banks also ended the day with the highest levels in the stock market, such as Banco Inter (6.38%) H Pan Bank (15.31%).

On the other hand, traditional private bank stocks are operating without a single sign, under pressure from the prospect of higher default rates and higher interest rates, according to Julia Monteiro, Analyst at My Cap. Actions itash It rose 0.21%, but Bradesco It decreased 0.39%.

As the day went up, Nubank’s market cap ended the week up over $10 billion since then Reached the market with a value of 41.7 billion Brazilian riyals.

number Brazil, Just Valley (388 billion Brazilian reais) and Petrobras (400 billion BRL) worth more than the value of a digital bank. All traditional banks track a lower market capitalization than Nubank, when compared to the same currency. The closest is Itaú Unibanco, worth R$205 billion.

In Latin America, Nubank is less valuable than a select group of companies. They include traditional business such as America MobileSuddenly, suddenly, suddenly Clear, worth 62 billion US dollars, but also free marketAnother reference for technology companies in the region, it is valued at $61 billion.

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Abertura on B3

The Nubank founders had to hurry back to New York, where the event debuted on Thursday, to take part on Friday in the gala marking the beginning of roles in B3.

From Wall Street to middle Sao PauloAnd David VelezAnd Christina Junquera And the American Edward Whipple His speech emphasized that the digital bank’s ambitions will remain high after its access to the Brazilian and American stock exchanges. Junqueira said, referring to the initial public offering of shares (Initial Public Offering, which is an acronym in English).

At B3, the ceremony was attended by some guests, in addition to the Board of Directors of the Digital Bank and the President of B3, Gilson Finkelstein, wearing a purple t-shirt, the color of the digital bank. In a year of record IPOs in Brazil, with 45 companies appearing on the stock exchange, the CEO confirmed that Nubank has introduced yet another innovation to the Brazilian market, which is Brazilian Deposit Receipt (BDR) Level 3, which, he says, allows true double inclusion. Level 3 is paper that is traded directly on the trading floor and requires registration with the regulator, and Brazilian Securities Commission (CVM).

Finkelsztain said that when he visited Vélez a little more than two years ago, the Colombian was already talking about his intention to put together a double-list of stocks, one of which is in Brazil. “We couldn’t do an IPO in New York and forget about our clients in Brazil,” Velez said at the party at B3, which was accompanied live on YouTube by more than 3,000 people at a time.

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roles for clients

Finkelsztain said Nubank’s strategy of distributing BDRs to its customers could double the number of CPFs in B3. The São Paulo Stock Exchange currently has 4 million clients. through the program NuSociosNubank delivered a BDR to each of the 7.5 million customers who requested to receive assets. In addition, another 815,000 investors purchased BDRs in the offering, making it the largest retail offering by a company on the local exchange.

The Fintech IPO took all of 2021 and involved more than 200 employees from the bank’s technology center Berlinpasser by MexicoAnd United State The headquarters is in Sao Paulo, Velez said. To reporters, the founders of the digital bank made a quick statement, without asking any questions, due to the quiet period that market regulators are asking for.

Vélez gave a message of encouragement to Brazilian businessmen. “In a country that may have a lot of opportunities, we want to prove now that all sectors of Latin America, no matter how focused, no matter how challenging, are open to more and better entrepreneurs.”

And the American Edward Whipple, in one of his rare statements to the press, indicated that after the success of the IPO, they will return to work. “On Monday, we will return to work,” he said.

Expensive paper?

the Financial sector analyst Carlos Macedo, associated with OhmresearchHe says the early days of a Nubank listed shouldn’t provide an accurate picture of the price the market tends to place on a business.

“There is a contracted shift due to the customer base, but the multiplier is high even compared to other companies in the sector,” he said, referring to financial indicators that investors often analyze, the multiplier.

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In a report released in October, before Nubank disclosed its bid numbers, Macedo estimated that according to traditional indices, which measure the relationship between stock price and earnings (price/earnings) or price/book value, Nubank would have a fair value of between $6 billion and $27 billion, well below the current price.

He also says that fintech will face a major challenge in the coming years: to keep up with or exceed the high expectations it has generated in the marketplace. “If he’s not able to accomplish, the fall is too high,” he says. “And the example of Stone, who traded at very high multiples, wasn’t able to achieve that growth and fell back.”

as shown broadcast column, a Stone’s sharp bearish share was part of a move that could extend to Nubank, Is that Fintech forced to cut stock prices in IPO.