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In 2021 we wondered if Brazil could get an IPO bonanza. It hasn’t happened: Not only is Latin America’s largest economy going through the same IPO drought as the rest of the world, but one of its most prominent public listings, Nubank, is suddenly coming to an end. Let’s investigate. — Anna
What does it mean?
Nubank is one of the preeminent neobanks in Latin America, so when its parent company, Nu Holdings, decided to go public with a dual listing in New York and São Paulo, the operation was one of the most anticipated exits of 2021 among observers from Brazil and fintech .
There have been some bumps in Nubank’s road to the IPO — for example, when it repriced its shares from $11 to $9 prior to its exit. But the fact that the debut on December 9 went well and that the market cap, although low, has not been scuttled either, can be considered a relative success.
Fast-forward to last week, when surprising news emerged: “Nubank to cancel Brazilian B3 exchange,” headlined Bloomberg Línea read. There’s more nuance to it: As described in the article, the fintech company will actually “restructure its Brazilian certificates (BDRs) program with the conversion from Level III to I.” Confused? You are not alone.