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Mexican fintech Covalto to list on Nasdaq via SPAC

Mexican fintech Covalto to list on Nasdaq via SPAC
Mexican fintech Covalto to list on Nasdaq via SPAC Copyright Thomson Reuters 2022
Copyright Thomson Reuters 2022
By Reuters
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MEXICO CITY - 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.

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