Fintech Chime Climbs 37% in Debut After $864 Million IPO
(Bloomberg) -- Chime Financial Inc. rose 37% in its trading debut after pricing its shares above the marketed range to raise raising $864 million in the year's sixth-biggest US initial public offering.
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The financial technology firm's shares opened trading Thursday at $43 after selling for $27 in the IPO, rising as much as 66%. The shares closed at $37.11 in New York trading, giving the company a market value of $13.5 billion.
Accounting for employee stock options and restricted stock units, Chime has a fully diluted value of about $15.8 billion based on its filings with the US Securities and Exchange Commission. That fully diluted value is a sharp drop from Chime's $25 billion valuation in a 2021 funding round.
'We don't focus on short-term fluctuation of the stock — even if it goes up today, I'm sure there's going to be other days that won't be as great,' Chime Chief Executive Officer Chris Britt said in an interview with Bloomberg Television. 'We remain focused on the long term.'
There's been a modest rebound in US IPOs in the wake of President Donald Trump's April 2 tariff announcement that spurred several companies to hit the pause button on their listing plans.
The average first-day jump for new offerings has been about 25% this year for US IPOs that raised at least $100 million — the most since 2020. In all, almost $27 billion has been raised in 156 IPOs on New York exchanges since Jan. 1, compared with $19 billion in 92 listings at this point last year, according to data compiled by Bloomberg.
At least two other significant IPOs are set to price next week before what is shaping up to be a summer lull in the US. Caris Life Sciences Inc. is seeking to raise as much as $423.5 million, while Slide Insurance Holdings Inc. is planning an offering of up to $340 million.
Chime's investors include affiliates of DST Global, Crosslink Capital, Len Blavatnik's Access Industries, General Atlantic, Menlo Ventures, Cathay Innovation and Iconiq, the filings show. After the IPO, Chime co-founders Britt and Ryan King will continue to hold more than 70% of shareholder voting power in aggregate.
Shawn Carolan, a Menlo Ventures partner and Chime board member, said he's relieved there was a reprieve in the markets following the tariff-induced volatility in April.
'All capital markets were like, 'Holy cow, what does this mean,' Carolan said, noting that Chime delayed its IPO. The company's strong debut Thursday indicates that now 'the markets are healthy,' he said.
San Francisco-based Chime sold 26 million shares and its investors sold 6.1 million in the IPO, after marketing them for $24 to $26 each. The offering attracted investor orders for more than 20 times the available shares, Bloomberg reported earlier Thursday.
The company, which doesn't hold a bank charter, works with Bancorp Bank and Stride Bank to offer consumers bank-like services. Chime generates revenue from the payments that customers make on their branded debit or credit cards.
'Payments volume and payments revenue for us has been highly resilient,' Britt said in a separate interview with Bloomberg.
Chime had 8.6 million active users as of March 31, 82% more than it had three years earlier, according to the filings. During the year ended March 31, Chime handled $121 billion in transactions. The membership has an average age of 36.2 years old, and 55% are female.
Chime's marketing includes a deal with the NBA's Dallas Mavericks for its logo to appear on the team's jerseys.
The IPO is being led by Morgan Stanley, Goldman Sachs Group Inc. and JPMorgan Chase & Co., while 11 other banks are also working on the offering. The company's shares are trading on the Nasdaq Global Select Market under the symbol CHYM.
--With assistance from Ed Ludlow, Caroline Hyde and Matt Turner.
(Updates with closing share price in second paragraph.)
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