7 Things to Know About the Upcoming $40 Billion IPO for Warren Buffett-Backed Nu Holdings Ltd. (NU)

November 30, 2021 6:00 PM EST

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Nu Holdings Ltd. (NYSE: NU) is set to launch its global IPO next week. The IPO will be available on the RobinHood IPO Access platform as well as other brokerages. Nu Holdings Ltd., backed by Warren Buffett, is one of the world’s largest digital banking platforms and one of the leading technology companies in the world, with 48.1 million customers across Brazil, Mexico and Colombia. Below are 7 important facts to focus on into the IPO:

1. Nu Holdings Ltd. IPO Timing: Nu Holdings Ltd. is expected to have its IPO on the NYSE on Dec 9, 2021. The stock ticker is 'NU'. Normally IPOs on the NYSE began trading between 10AM-2PM ET.

2. Nu Holdings Ltd. IPO Price: The company anticipates the initial public offering price to be between $8.00 and $9.00 per share.

3. Shares Offered: The company is offering 289,150,555 Class A ordinary shares (or 317,721,984 Class A ordinary shares if the underwriters exercise in full their over-allotment option), which may be reduced by up to Class A ordinary shares that are initially being offered in the form of BDRs in the concurrent Brazilian offering (including any BDRs that may be offered under the Customer Program). There will be 4,608,684,459 Class A and Class B ordinary shares (or 4,637,255,888 ordinary shares if the underwriters exercise in full their over-allotment option) outstanding after this offering.

4. Nu Holdings Ltd. IPO Valuation: A pricing at the midpoint of the range would value the company at around $40 billion.

5. IPO Underwriters: Morgan Stanley, Goldman Sachs, Citigroup, Nu Invest, Allen & Co., HSBC, UBS Investment Bank, Autonomous, KeyBanc Capital Markets, NAU Securities, Nomura, Numis, Susquehanna Financial Group are acting as the underwriters for the offering.

6. Important Nu Holdings Ltd. Financials: Total revenue increased to $1062.1 million for the nine months ended Sept 30, 2021 compared to $534.6 million for the nine months ended Sept 30, 2020.

7. Nu Holdings Ltd. Total Addressable Market (TAM): The company’s Total Addressable Market represents the total potential opportunity across all of Latin America, including marketplace revenue, defined as take rate fees derived from e-commerce marketplace gross merchandise volume. The retail financial services and marketplace revenue opportunity amounted to $186 billion in 2020 and it is projected to grow at a CAGR of 8% to $269 billion by 2025, according to the Oliver Wyman Report.

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Warren Buffett, UBS, Goldman Sachs, Citi, KeyBanc, Morgan Stanley, Nomura, HSBC, Susquehanna International Group of Companies, IPO