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In 2021, we wondered if Brazil could be facing an IPO. It didn’t happen: Not only is Latin America’s largest economy going through the same IPO drought as the rest of the world, but also one of its most popular public listings, Nubank, is coming to an abrupt end. Let’s explore. — Anna
What does it mean?
Nubank is one of the leading neo-banks in Latin America, so when its parent company, Nu Holdings, decided to go public with a dual listing in New York and Sao Paulo, the operation was one of the most anticipated exits of 2021 among observers of Brazil and fintech.
There have been some bumps in Nubank’s road to IPO — such as when overrated its stock from $11 to $9 before its release. But the fact that his debut is on December 9 went well and that its market cap, although down, it hasn’t fallen each can be considered a relative success.
Fast forward to last week, when some surprising news broke: “Nubank divests from Brazilian stock exchange B3,” Bloomberg Línea headline Read it. There are more nuances: as detailed in the article, the fintech company will actually “restructure its Brazilian depository receipts (BDRs) Level III to I conversion program.” Confused? You are not alone.