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SoftBank-backed Banco Inter puts its Nasdaq listing plans on hold

The Brazilian digital bank will not proceed with its planned listing in the US after shareholders demand to cash out exceeded BRL 2 billion

Inter Brazil Nasdaq
Photo: Inter/Courtesy
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Brazilian digital lender Banco Inter SA said it will not proceed with a planned listing on Nasdaq for now, according to a securities filing on Thursday (2).

Inter, which is backed by Japan’s SoftBank Group Corp, was expecting shareholders to demand to cash out less than BRL 2 billion, while its vast majority would swap its shares in Brazil for shares listed in the U.S. or Brazilian Depositary Receipts. But the bank said requests to cash out exceeded BRL 2 billion.

READ ALSO: Banco Inter reports profit in the third quarter as it looks at an IPO in the United States

Banco Inter had offered shareholders BRL 45.84 per unit for investors not interested in migrating to the United States, but units were trading below it, making the cash deal more attractive. Units in Inter closed at BRL 32.99 on Thursday.

In a recent interview with Reuters, Chief Financial Officer Helena Caldeira said the bank has the right to review the transaction and potentially lower the cash-out price, without providing a time frame for that.

READ ALSO: Another Brazilian bank abroad? Bradesco is considering going international with its digital banking arm

Inter said earlier it was planning to list on Nasdaq to have “more access to global capital markets and potentially a larger and more diverse investor base.”

On Friday, Inter said it will continue working to continue the group’s corporate reorganization, which aims to list the company’s shares on the US Nasdaq stock exchange.

The company said in a statement that the reorganization cannot be carried out “at this time because of cash out payments and adverse market scenario”.

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