Mexican fintech Covalto to list on Nasdaq via SPAC

LIV Capital Acquisition 2

18/08/2022 14:00

MEXICO CITY, Aug 18 (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)
 ((Kylie.Madry@thomsonreuters.com;))