Nu Pagamentos SA, the Brazilian fintech backed by billionaire Warren Buffett’s Berkshire Hathaway Inc., is planning an initial public offering of more than $2 billion on the Nasdaq for the end of this year, according to people familiar with the matter.
Nubank, as the firm is known, may seek a valuation of more than $40 billion, the people said, asking not to be identified because the transaction details aren’t yet public. Deliberations are ongoing, so the details may change. Nubank declined to comment.
Banks handling the share sale include Morgan Stanley, Goldman Sachs Group Inc., Citigroup Inc. and UBS Group AG. Representatives for the firms declined to comment. David Velez, Nubank’s co-founder, has said in recent months that the company was considering a public listing, without disclosing details.
A private fundraising in early 2019 put Nubank’s value at $10.4 billion. That figure had soared to $30 billion by June, after Berkshire purchased a $500 million stake, a reflection of how successful the company was in capitalizing on the boost the pandemic gave to digital banking.
At a more-than $40 billion valuation, Nubank could end up becoming the second most valuable financial institution in Latin America. Brazil’s Itau Unibanco Holding SA holds the top spot, with a $55 billion market value. Its biggest rival, Banco Bradesco SA, is worth about $41 billion.
Sao Paulo-based Nubank, with more than 40 million clients, has expanded throughout Latin America. The company is also backed by Advent International and Tencent Holdings Ltd., and is a rare tech unicorn with a female founder, Cristina Junqueira. She joined Velez, a private equity veteran, and Edward Wible in launching Nubank in 2013, starting off with a zero-paperwork, no-fee credit card. Now it offers several other products, including a recent foray into Brazil’s booming asset-management market.
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