Brazilian financial technology (fintech) company Nubank is going public today in a highly anticipated initial public offering (IPO) that has the backing of none other than Warren Buffett.
Nubank begins trading trading on the New York Stock Exchange under the ticker symbol NU. Shares are expected to start trading at about $9 apiece.
Perhaps most important to investors is the fact that Nubank is coming public with celebrity backing. More specifically, Warren Buffett (through his holding company) invested $500 million in Nubank in June.
Beyond that, hare 10 things investors should know about Nubank as NU stock begins trading.
NU Stock IPO: 10 Things to Know About Nubank
- Buffet’s backing is critical, but Nubank is attention-grabbing on its own. That’s because it is currently the largest digital bank in terms of number of accounts.
- The company has been around since 2013, and has gained prominence for providing digital bank accounts and credit cards without charging fees.
- Nubank also offers financial solutions such as loans, insurance products and investment services.
- As a digital-focused bank, customers use a mobile app to access their accounts.
- So just how many accounts does Nubank have? The company recently disclosed that it has 48 million. This comes as it adds an average of 40,000 accounts each day.
- Along with this, it has also seen a compound annual growth rate (CAGR) of 110% since the third quarter of 2018.
- This fast growth has also earned it praise. Nubank earned a spot on TIME Magazine’s list of the 100 most-influential companies. It also placed on the 2021 Disruptor List from CNBC.
- In terms of how those accounts translate to size, the NU stock IPO values Nubank at roughly $40 billion.
- Investors should also note that Nubank is already profitable.
- However, there is reason for caution. Buffett’s endorsement is bringing a lot of attention to Nubank. But StoneCo (NASDAQ:STNE), the other Brazilian fintech he has invested in, has had a rough year. STNE stock is down 80% in the year to date.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
