XP is valued in $ 19 billion and become the largest IPO from a Brazilian company in Nasdaq

XP's stocks started to be sold by $ 27 and ended the first day being valued in $ 34,46

Guilherme Benchimol XP's CEO
Guilherme Benchimol, XP's CEO. Photo: Guilherme Benchimol's LinkedIn
  • Previously valued in $ 14.9 billion, XP’s stocks price increased by 27,3% on its first day in Nasdaq
  • By the end of the day, the Brazilian company reached a valuation of $ 19 billion, exceeding all expectations
  • The company raised $ 2.2 billion and the CEO said that this total amount will be reinvested in a new public listing in Brazil

Since the beginning, XP‘s IPO was ready to be huge, regarding the $ 14.9 billion valuation forecasted in the announcement that established the starting stock price in the range of $ 22 to 27 with expectations to raise $ 2.25 billion in three rounds. These numbers revealed the ambitious plan to become the fourth largest in the United States in 2019, but the reality could look even brighter for the company. 

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At XP’s first day in Nasdaq (December 11), as soon as the first negotiations started, the initial stock price gave a jump from $ 27 to $ 32,75 indicating the real potential of the deal. By the end of the day, the stock’s value increased by 27,3% achieving $ 34,46, according to Neofeed information. 

In an interview for Neofeed, the CEO of the company that now is valued in $ 19 billion, Guilherme Benchimol, revealed which were the main reasons why XP caught the investor’s attention in his opinion, “in the IPO, we provided medium-term guidance, from 3 to 5 years, with revenue equal or superior to 35% and net margin between 18% and 22%.”

As a result of the IPO, the company plans to invest the total amount of $ 2,2 billion earned in a new public listing in Brazil. The CEO pointed out that the company will growth by 35% in the following 3 to 5 five years, according to Neofeed. 

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