The Mexican banking and digital services platform Covalto reported on Thursday that it will be listed on the NASDAQ through the merger with a SPAC-type company, the first time that a fintech from the Latin American country is listed on the United States stock market.
The deal puts the firm, formerly known as fair creditwith an implied pro forma enterprise value of $547 million and could generate up to $177 million of capital before expenses, it said in a statement.
Senior company executives said in a conference call after the announcement that they expect the listing to be completed in the first quarter of 2023.
The transaction will be accompanied by committed financing of US$60 million, half of which had been previously announced, it added. The other 30 million dollars will be financed by LIV Capital, LIVB’s parent company, the SPAC with which Covalt will unite your business.
Recently, Covalt became the first fintech Mexican to acquire a regulated bank. He now estimates loan grants to reach about $270 million this year and $400 million by 2023.
Simpson Thacher & Bartlett and Davis Polk & Wardwell are acting as legal advisors to Covalt and LIVB, respectively, in the operation.