In order to engage users in its IPO, Nubank will offer 18 million BDRs

Nubank launched the NuSócios program, which allows customers to own "a little piece" of the fintech company

09.Nov.2021 19:03 BRT
UPDATED 19:04 BRT

About to hold its IPO, Brazilian Nubank launched an initiative to engage its users in the digital bank’s double debut on the stock exchange in the United States and Brazil, expected up to December: the so-called NuSócios program, which allows customers to own “a little piece” of the fintech.

The “little piece” actually is a BDR, or Brazilian Depositary Receipts, which is equivalent to about 1/6 of a Nu Holdings class A common stock. Nubank said it will allocate between BRL 180 million and BRL 225 million to buy BDRs for customers and will offer 18,329,939 of BDRs at no cost. Through the bank’s app, customers will be given the option to accept the share fraction.

Users who get a BDR from Nubank will not be able to trade the bonds for 12 months from the digital bank’s debut on the stock exchange; after this period, they will have the option to keep or trade the BDR on the Brazilian stock exchange B3. The price of the asset will only be confirmed by Nubank after the IPO is done. It is estimated that the BDR will be priced between BRL 9.35 and BRL 10.29 each.

As there is a maximum of BDRs available for offering, the “little pieces” will be offered to active clients (who have performed any transaction in the last 30 days) and who are not in default. According to Nubank, the issuance of the certificate of these shares will respect the order of the acceptance by customers to join the NuSócios program. Each client will be entitled to one BDR.

Nubank is targeting a market value of more than $50 billion

Nubank has officially filed for its IPO request on the New York Stock Exchange (NYSE) and Brazil’s B3. The largest neobank in Latin America (and also in the world) plans to use its IPO proceeds for working capital and acquisitions, among other investments.

Nubank hopes to raise $3 billion (BRL 16.8 billion) with both offerings. It targets a market value of more than $50 billion for its initial public offering in the US, making the digital bank more valuable than Brazil’s largest bank, Itaú Unibanco, valued at $38 billion.