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In 2021, we questioned whether or not Brazil could be in for an IPO bonanza. It hasn’t occurred: Not solely is Latin America’s largest financial system going via the identical IPO drought as the remainder of the world, but in addition one in every of its highest-profile public listings, Nubank, is coming to a sudden finish. Let’s discover. — Anna
What does it imply?
Nubank is one in every of Latin America’s preeminent neobanks, so when its mother or father firm, Nu Holdings, determined to go public with a twin itemizing in New York and São Paulo, the operation was one of the crucial anticipated exits of 2021 amongst observers of Brazil and fintech.
There have been some bumps on Nubank’s highway to IPO — as an example, when it repriced its shares from $11 to $9 forward of its exit. However the truth that its debut on December 9 went okay and that its market cap, whereas down, hasn’t plummeted both, might be thought-about a relative success.
Quick-forward to final week, when shocking information emerged: “Nubank to Delist from Brazil’s B3 Inventory Alternate,” a Bloomberg Línea headline read. There’s extra nuance to it: Because the article detailed, the fintech firm will really “restructure its Brazilian Depositary Receipts (BDRs) program with the conversion from Degree III to I.” Confused? You aren’t alone.