First Mexican Fintech Company Covalto To List On The Us Stock Market

8
b2b

Covalto, a Mexican digital banking platform, plans to become the first Mexican FinTech to list on American stock exchanges by merging with a special purpose acquisition company (SPAC).

According to Reuters, the projected $547 million Pro-forma enterprise value of the firm results from its agreement to list on the Nasdaq. The acquisition, according to Covalto, previously Credijusto, may yield up to $177 million in the capital before costs.

According to the article, the listing includes $60 million in the financing, of which half has already been revealed. The remainder will come from LIV Capital, the SPAC’s parent company and the owner of LIVB. On Thursday, Covalto could not be reached for comment right away.

The business claimed at the time that it was the first fintech company in Mexico to acquire a licensed bank, turning itself into the only neobank in Latin America with a concentration on serving small- to medium-sized enterprises (SMBs).

The purchase, according to co-CEO David Poritz, will enable “digital cross-border experiences” for businesses engaged in commerce between the United States and Mexico, “an opportunity that we see as a big driver of development for Credijusto.”

Additionally, in 2021, the business began discussions with another SPAC about amalgamating the two and going public on the New York Stock Exchange.

Credijusto, a 2015 startup, appealed to the business since it is well-known among SMBs in Latin America.

According to a statement made at the time, the business has developed a “multi-product offering” that “combines cutting-edge software design, novel uses of data science, and improved internal procedures.”