Latin American fintechs will take encouragement from the successful Nasdaq listing of Uruguay-based payments fintech dLocal on June 3.
The IPO, which priced at $21 a share – well above the deal’s range of $16 to $18 – and popped a further 55% in trading to close at more than $32, was proof that the ‘Latin American discount’ that is typically applied to valuations of fintechs in the region can be overcome.
“I really struggled with the Latin American discount when I was an investment banker,” says dLocal’s COO, Sumita Pandit, who before joining the fintech in April this year had been global head of fintech investment banking for JPMorgan in New York.
“When we first started testing valuations with investors the assumption was the nearest comparisons were the Brazilian companies like Stone and PagSeguro,” Pandit, now based in San Francisco, told Euromoney shortly after the transaction priced.
Going public gives us acquisition currency...
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
