Nubank, LatAm’s largest fintech, has announced it will leave Brazil’s stock market. On November 2021, Nubank did an IPO with a dual listing on the New York Stock Exchange and the São Paulo Stock Exchange.
The company said in a statement that this delisting will reduce unnecessary redundancies and duplicate workloads and maximize efficiency by changing to a single listing on the New York Stock Exchange.
According to Guilherme Zanin, an analyst at investment brokerage Avenue, keeping the Brazilian Depositary Receipts (BDRs) would imply a high cost for the company:
“Hence, its objective became to avoid low liquidity in the Brazilian market and focus on the American market instead.”
Cristina Junqueira, Nubank’s cofounder, stated the following:
“Our focus is on improving processes, productivity, and scalability to deliver growth and value to all our stakeholders.”
Originally, and according to Pedro Queiroz -equity specialist at SVN Investimentos- the double listing was meant to enable Nubank’s NuSocios program. Through this program, Nubank provided BDRs to 7.5 million customers in exchange for signing up for the bank’s brokerage.
In 2021, Nubank’s successful IPO reached $41.5B, positioning the company as Latin America’s most valuable listed bank. However, in recent months, Itaú BBA, Bradesco, and Santander indicated an “underperform” recommendation on Nubank’s shares. The company also recorded a $29.9M loss in the second quarter of 2022.
Shortly after this announcement, Nubank also shared that it reached 70 million clients across Latin America.