Nubank BDR: all about Nu partners

Find out everything about Nubank BDR on the stock exchange!

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More than 7.5 million customers received share receipts, Nubank BDR, for free.

In this way, they became partners of the company in the process of opening capital of one of the largest digital banks in the world.

The bank's BDRs (receipts of foreign shares traded on the Brazilian stock exchange) closed trading on the Brazilian stock exchange up 12.35%, at R$ 11.28.

BDRs actually represent shares or fractions thereof of a company listed on a stock exchange in another country. However, they are traded on the B3, the Brazilian stock exchange.

To understand more about the subject, continue reading.

Nubank on the stock exchange: what does this mean?

On December 9, Nubank officially entered the stock market as one of the largest IPOs in history in terms of the number of investors.

To better understand the subject, it is important that you know what IPO means.

IPO is the acronym for “Initial Public Offering”, or “Initial Public Offering” in Portuguese, representing the first time that a company receives new shareholders by making a share offering.

Generally, companies that go public are already at an advanced stage of business maturity.

With its IPO, Nubank gained more than 800 thousand shareholders.

That's right! Approximately 815,000 people decided to invest in the bank's BDRs, making it one of the largest IPOs in the world.

Additionally, 7.5 million people accepted a BDR at no cost through Nubank.

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Investing in the IPO: understand Nubank's BDRs

The booking period was from November 17th to December 7th.

BDR is an investment that behaves in a similar way to shares: the price rises and falls according to market fluctuations and the supply of shares.

Each BDR will represent a fraction of 1/6 of a class A common share of Nu Holdings.

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Why did Nubank do an IPO?

Nubank's IPO was a way to expand the company's operations.

Furthermore, by raising funds from new investors, the company will be able to have an even greater impact on the lives of its customers. In fact, this has always been one of the company's concerns.

This means that one of the largest digital banks in the world will sell small pieces of the company to those interested in becoming investors.

Since the beginning of operations, Nubank's goal has always been to help Brazilians have more control over their money.

By going public, the company is, in fact, opening up part of its capital to gain shareholders.

This way, it will be easier to implement projects.

It is important to remember that investing in an IPO means investing money in the stock market, which involves several opportunities, but also some risks.

Who's who in Nubank's IPO?

There are several specific IPO institutions and nomenclatures. Learn more about some of them:

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Nu Holdings Ltd.

A holding company is a company whose main activity is to hold shares in one or more companies.

This means that it holds a large part of the shares of other companies, controlling the management.

Nu Holdings is the parent company of several other Nus (Nubank Brazil, Nu Colombia).

Nubank's IPO is Nu Holdings' IPO.

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NuInvest

NuInvest is Nubank's platform focused on investments.

The service offers more than a thousand financial products for digital investment.

The best thing of all is that the process is quick and without any bureaucracy. Furthermore, there are no brokerage fees.

NuInvest is also the brokerage responsible for distributing Nubank products traded on the stock exchange.

This means that during the IPO, Nuinvest is the company that has the power to offer Nu Holdings BDRs for purchase.

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NYSE

The NYSE (New York Stock Exchange) is considered the largest stock exchange in the world.

It is the New York Stock Exchange, where Nu Holdings went public.

B3 (Brazilian Stock Exchange)

B3 is Brazil's stock exchange.

The bell ringing ceremony to celebrate the start of Nubank BDR trading was held on December 10th at B3.

The securities are available to investors under the ticker NUBR33.

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Nu partners: owners of a piece of Nubank

Nubank entered the New York Stock Exchange and decided to offer shares to customers during the initial public offering phase.

Obviously, the news made many account holders interested in the possibility of becoming partners of the digital bank.

When a company goes public, people can buy shares in it. In this way, they become shareholders in the company.

The small piece (fraction of the company) is a BDR, which as you already know, represents 1/6 of a Nu Holdings class A common share.

The certificate allows you to trade a percentage of Nubank shares on B3.

The BDR may be traded after 1 year of official issuance.

During the first 12 months of Nubank's listing on the stock exchange, the company will take care of your BDR, so that you can make good decisions regarding what to do with it. “your little piece” of the company.

After a year, you can decide whether to keep your BDR or sell it.

Do I need to keep the BDRs for a year?

It is possible to accept the BDR at no cost and still invest in the IPO.

But there are two main differences:

The free BDR offered by Nu Sócios can only be traded one year after issuance. It is not necessary to declare it on Income Tax in 2022.

BDRs that can be reserved for the IPO do not have this 12-month period. For this reason, it will be necessary to declare them in the IR.

Conclusion

It is important to know that investing in the stock market involves certain risks.

Obviously, this risk can be worth it if you know exactly what your investor profile is, your financial goals and create an investment strategy.