Mexico's Covalto quietly delays Nasdaq listing to 2024

By Isabel Woodford

MEXICO CITY, April 20 (Reuters) - Mexican digital and banking services platform Covalto has pushed back its much-anticipated plans to list on the Nasdaq exchange through a special purpose acquisition company (SPAC) to 2024, according to a filing to the U.S Securities and Exchange Commision.

The company had initially sought to go public in the first quarter, seeking to be the first Mexican fintech to trade publicly on a U.S. stock bourse. However, dampened markets have seen few listings and a near-hiatus of SPACs globally so far this year.

The filing, published last week, shows that Covalto and its nominated SPAC, LIVB, have agreed to extend the deadline for the merger "from May 10, 2023 to February 10, 2024."

The filing did not give details for the reason for the extension, but showed the transaction was still awaiting regulatory approval.

Covalto did not respond to a request for comment about the SPAC delay or the financial health of the company.

However, a source close to Covalto told Reuters late Wednesday that the merger is still in the works, with the delay simply down to lengthy regulatory processes with the SEC.

"The transaction is still moving forward and working through regulatory filings," the source told Reuters.

The source added that Covalto's pro-forma valuation of$547 million, announced last year as a result of the merger, remained the same.

Founded in 2015, Covalto has some big name backers behind it including QED investors and Goldman Sachs.

The company, now a licensed bank, offers loans and banking services to Mexico's under-served small and medium sized enterprises. (Reporting by Isabel Woodford Editing by Marguerita Choy)