XP Investimentos — NASDAQ IPO Roadshow
Investors who've never heard of the company, deciding in minutes whether to invest tens of millions — the toughest test for an interpreter.
▶ QUICK SUMMARY
XP Inc. listed on NASDAQ on December 11, 2019, with a US$2.25 billion offering, shares priced at US$27 (above the indicative range) and a US$14.9 billion valuation. Demand exceeded the offering 14 times over. Alex Barros interpreted the pre-IPO roadshow — institutional investor presentations coordinated by JP Morgan, Goldman Sachs and Morgan Stanley.
The outcome of the process lingo was part of
XP was valued at US$14.9 billion on NASDAQ — equivalent to 20% of Itaú Unibanco's market value at the time, despite Itaú having paid R$6 billion for 49% of XP in 2017. In two years, the market validated a company traditional banks had underestimated.
More than 10 banks pitched to coordinate XP's offering. JP Morgan, Goldman Sachs and Morgan Stanley were selected as lead bookrunners, with Itaú BBA, Bank of America, Citi, Credit Suisse and UBS rounding out the syndicate.
The IPO roadshow — the most intense simultaneous interpretation format
An IPO roadshow isn't a presentation. It's a marathon: over a few days, company leadership visits dozens of funds, asset managers, hedge funds and family offices across multiple American cities — New York, Boston, Chicago, San Francisco. Each session is a new audience meeting the company for the first time and asking adversarial questions in real time.
In an M&A management presentation, the buyer is already qualified — there's a prior relationship and declared interest. In an earnings presentation, the investor knows the company. In an IPO roadshow, the interpreter faces investors who've never heard of the company, who are deciding in minutes whether to commit tens of millions of dollars, and who ask aggressive questions about every line of the financial model. The Q&A of an IPO roadshow is simultaneously the toughest test for the company and the interpreter.
XP's context in 2019
At the time of the roadshow, XP had R$350 billion in assets under custody, more than 1.5 million active clients, revenue of R$3.695 billion and net income of R$699 million in the first nine months of 2019. The business model — an open investment platform disintermediating the big banks — was new to most American investors and required a careful narrative in English.
XP had postponed its IPO in May 2019 due to market conditions — the company assessed there was no need for capital at that time and the digital bank project was still under development. When it resumed the process, investor demand exceeded all expectations: 14 times the offering, with orders above US$30 billion.
The vocabulary — capital markets and fintech in the roadshow
| Term (EN) | Equivalent (PT) | Context |
|---|---|---|
| Book building / order book | Order book formation | Process of collecting investor buy orders — XP's order book exceeded 14x the offering |
| AuC — Assets under Custody | Assets under custody | XP's main scale metric — R$350 billion in 2019. Distinct from "assets under management" (AuM), a distinction American investors make immediately |
| Open platform / fee-based model | Open platform / fee-based model | XP's core differentiator — access to multiple issuers vs. banks that distribute only proprietary products. The roadshow's central narrative challenge |
| Take rate | Take rate | The fee XP charges on distributed products — American investors analyze this metric to assess pricing power and sustainability |
| IFA — Independent Financial Advisor | Independent financial advisor (IFA) | XP's independent-advisor distribution model — no direct equivalent in the American market, different from the US RIA (Registered Investment Advisor) |
| Disintermediation | Bank disintermediation | XP's core narrative: moving Brazilian investors away from the big banks toward an independent platform |
Frequently asked questions
What is an IPO roadshow?+
The series of presentations a company makes to institutional investors before going public. In the days ahead of the IPO, the CEO, CFO and coordinating banks visit funds across multiple cities to present the business and build the order book.
What was the outcome of XP's IPO?+
XP Inc. listed on NASDAQ on 12/11/2019. US$2.25 billion offering, shares at US$27 (above the US$22-25 range), US$14.9 billion valuation, demand 14x the offering.
Why did the roadshow require simultaneous interpretation?+
XP presented to American investors in English, but its executives are Brazilian and presented in Portuguese. Interpretation ensured the Q&A happened precisely and in real time.
Was there an IPO attempt before December 2019?+
Yes. In May 2019, XP postponed its IPO due to market uncertainty. The first investor presentations happened before that decision; the IPO was resumed and successfully completed in December.
Does the interpreter sign an NDA for IPO roadshows?+
Yes. Before public disclosure, offering information is non-public material — lingo signs a bilateral NDA before the service begins.
Do you have an IPO roadshow or follow-on?
American institutional investor presentations — lingo interprets with the speed and precision capital markets demand.
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