Salem Radio Network News Monday, October 3, 2022

Science

Mexican fintech Covalto to list on Nasdaq via SPAC

MEXICO CITY (Reuters) – Mexican digital and banking services platform Covalto said on Thursday it will list on the Nasdaq exchange through a special purpose acquisition company (SPAC), the first time a Mexican fintech trades publicly on a U.S. stock bourse.

The deal puts the company, formerly known as Credijusto, at an implied $547 million pro-forma enterprise value and could generate up to $177 million of capital before expenses, Covalto said.

The fintech’s listing accompanies a $60 million financing, $30 million of which had been previously announced, it said. The other $30 million will be from LIV Capital, the parent of LIVB, the SPAC which Covalto will use to list.

Recently, Covalto became the country’s first “fintech bank” after it purchased a regulated bank, overcoming one of the primary challenges for Mexican fintechs by beating regulatory red tape.

It now estimates loan originations for the year to reach more than $270 million, with loan origination in 2023 seen hitting $400 million.

Simpson Thacher & Bartlett LLP will advise Covalto, with Davis Polk & Wardwell LLP acting as advisers to LIVB, Covalto said.

(Reporting by Ana Isabel Martinez, writing by Kylie Madry; editing by Uttaresh.V)

Previous
Next

Editorial Cartoons

View More »

Steve Breen
Thu, Sep 29, 2022

X CLOSE