By Anirban Sen and Carolina Mandl
BANGALORE/SÃO PAULO (Reuters) – Digital bank Nubank is seeking a valuation in its planned initial public offering (IPO) in the United States that would put it above the $55.4 billion worth of Itaú Unibanco, said two sources familiar with the Subject.
In a recent financing round led by Warren Buffett’s Berkshire Hathaway, Nubank was valued at $30 billion.
If Nubank, with 40 million customers, is listed with a value higher than that of Itaú Unibanco, it will join the team of the biggest fintechs in the world, surpassing Robinhood, for example.
A source said that in recent weeks Nubank executives had asked for valuations of up to $100 billion. But a source said the company is unlikely to reach that amount at the IPO.
Nubank declined to comment on the expected valuation.
The digital bank closed 2020 with a loss of 230 million reais and a loan portfolio of around 18 billion reais. In the first quarter, it had net income of 6.8 million reais, according to the Central Bank.
Last year, Itaú had a profit of 18.5 billion reais, and a return on equity of 14.5%. Its loan portfolio totaled 870 billion reais.
In a sign of growth potential, Nubank has already issued more debit cards than Itaú, attracting customers who avoid traditional bank accounts. Nubank also started a regional expansion, covering Mexico and Colombia.
According to CBInsights ranking, Nubank is the seventh most valuable fintech in the world, behind Stripe, Klarna and Revolut.
Nubank hired Morgan Stanley, Goldman Sachs and Citigroup to help lead the US IPO.
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