Digital banking startup Chime targets US$11.2 billion valuation in US IPO
San Francisco, California-based Chime and some of its existing shareholders are seeking to raise up to US$832 million by offering 32 million shares priced between US$24 and US$26 apiece.
Chime is offering 25.9 million shares in the offering, while certain shareholders, including venture capital firm Cathay Innovation, are putting up 6.1 million shares.
The US IPO market has sprung back to its feet after a disappointing April as equities rebounded amid easing volatility, paving the way for companies to go public after tariff-driven chaos shut the window for weeks.
Recent listings, including retail trading platform eToro, have been well-received by investors. Analysts say the stage is set for a broader IPO pickup, but stability needs to last longer before the window fully reopens.
'Momentum is building after the tariff-related volatility. Right now, investors want to see fundamentally strong companies with attractive valuations,' said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Sign Up
Sign Up
Chime, founded in 2012, offers banking products such as checking and high-yield savings accounts through its app. The company mainly generates revenue when its members spend using Chime-branded debit and credit cards.
Chime raised US$750 million in a 2021 funding round at a US$25 billion valuation. Its major backers include Yuri Milner's DST Global, private equity firm General Atlantic and investment firm ICONIQ.
Fintech revival?
Financial technology listings have slowed down since the pandemic-era boom as interest rates rose and inflation surged.
Swedish fintech giant Klarna paused its US IPO plans earlier this year as tariffs rattled global markets.
A successful IPO for Chime could pave the way for other fintech companies that have recently considered tapping public markets.
Chime's IPO valuation target represents prudence in giving buyers a decent discount to encourage participation, said Samuel Kerr, head of equity capital markets at Mergermarket.
'As the largest deal to test the market since 'Liberation Day,' Chime will be a fascinating case study.'
Morgan Stanley, Goldman Sachs and JPMorgan are the lead underwriters for the IPO offering. Chime will list on the Nasdaq under the symbol 'CHYM'.
Chime plans to use a portion of its IPO proceeds to settle tax obligations related to employee-restricted stock units. REUTERS
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Times
8 minutes ago
- Business Times
Stocks to watch: Wilmar, CapitaLand Investment, City Developments, Yangzijiang Financial, Haw Par Corp
[SINGAPORE] The following companies saw new developments that may affect trading of their securities on Wednesday (Aug 13): Wilmar International : The agribusiness group on Tuesday posted a net profit of US$594.9 million for H1, up 2.6 per cent from US$579.6 million in the year-ago period. This was attributed to stronger performances in its plantation and sugar milling, which rose on the back of higher palm oil prices and fresh fruit bunch production. Shares of Wilmar closed flat at S$2.97 on Tuesday, before the announcement. CapitaLand Investment (CLI) : It will invest more than 192 billion rupees (S$2.8 billion) in Maharashtra by 2030 to deepen its presence in the key Indian markets of Mumbai and Pune, CLI said on Tuesday at the launch of its first India data centre in Navi Mumbai. The planned investments are an 'integral part' of CLI's wider growth strategy for India, where it aims to expand its funds under management from more than S$8 billion currently to around S$15 billion by 2028. CLI shares closed 0.7 per cent or S$0.02 lower at S$2.75 on Tuesday. City Developments Ltd (CDL) : It posted a 3.9 per cent year-on-year rise in its first-half net profit to S$91.2 million on Wednesday, up from S$87.8 million in the previous corresponding period. This translates to a basic earnings per share (EPS) of S$0.097, compared with S$0.092 in the year-ago period. The board proposed a final dividend of S$0.03 per share, a slight increase from S$0.02 a year prior. The property development segment was once again the largest revenue contributor with a 24.3 per cent jump. The counter closed flat at S$6.35 on Tuesday before the announcement. Yangzijiang Financial : The investment management company on Tuesday posted a 28 per cent rise in net profit to S$137.7 million for its H1, from S$107.4 million in the year-ago period. This was largely driven by the reversal of credit loss allowances, higher contributions from maritime joint ventures and net foreign exchange gains. The group said that the subsidiary which it is proposing to spin-off, YZJ Maritime Development, intends to raise up to S$250 million through the placement of new shares to accredited investors and institutional investors. The counter ended S$0.015, or 1.5 per cent, higher at S$0.99 on Tuesday. Haw Par Corporation : The Tiger Balm ointment maker posted an 18.2 per cent rise in net profit to S$144.1 million for its first half ended June, from S$122 million in the previous corresponding period. H1 revenue rose 7 per cent to S$126.3 million, from S$118.1 million a year earlier, as demand for healthcare products remained resilient. Shares of Haw Par closed S$0.19 or 1.3 per cent lower at S$14.13 on Tuesday, before the results were released. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up Hong Leong Asia : The group posted a 13.1 per cent rise in net profit to S$56 million for the first half ended June, from S$49.5 million in the year-ago period. This was mainly due to the strong performance of its subsidiary Yuchai, as well as higher precast concrete volumes, the company said on Tuesday. Shares of Hong Leong Asia closed 1.1 per cent or S$0.02 higher at S$1.86 on Tuesday, before the release of the results. ValueMax Group : The group on Tuesday posted a net profit of S$48 million for H1 , up 35.5 per cent from S$35.4 million in the year-ago period. This was attributed to 'robust performance' across all its core business segments – pawnbroking, moneylending, gold and jewellery retail and trading. Revenue rose 16.8 per cent to S$268.3 million, from S$229.8 million previously. Shares of ValueMax closed S$0.05 or 6.6 per cent higher at S$0.805 before the announcement on Tuesday. Prime US Reit : Its H1 2025 distribution per unit declined 33.3 per cent to US$0.0012 , from US$0.0018 in the year-ago period. Income available for distribution slid 28.6 per cent to US$16.7 million, from US$23.3 million. The manager attributed the drop to the divestment of One Town Center, an office tower in Florida, in July 2024 as well as higher finance expenses. Units of Prime US Reit closed up 0.6 per cent or US$0.001 at US$0.174 on Tuesday, before the announcement. Trading halt: Ascent Bridge called for a trading halt at 12.05 pm on Tuesday, pending the release of an announcement. Its shares ended the day 1.4 per cent or S$0.01 lower at S$0.68.
Straits Times
38 minutes ago
- Straits Times
Tencent investors eye path to record in cheap stock valuations
Tencent still has not erased the hit from China's corporate crackdowns, which drove its stock to a five-year low in 2022. HONG KONG – As tech megacaps around the world climb to new records, investors see a chance for Tencent shares to finally regain their former glory. The Hong Kong-listed stock has added more than US$150 billion (S$192.5 billion) in market value this year yet it remains 26 per cent below its all-time high. And it is trading at a substantial discount to global tech peers from Meta to Sony. Tencent has more than cheapness going for it, with earnings estimates higher than ever ahead of the company's results due today , and big expectations for game titles including Valorant Mobile. So how close might the shares be to a new peak? 'It's just a matter of time,' said Ms Jian Shi Cortesi, a fund manager at Gam Investment Management, which has Tencent as the largest holding in its flagship fund. The ubiquity of WeChat will make Tencent a long-term winner in e-commerce, and its stock valuations are 'reasonable' on historical and peer comparisons. Tencent still has not erased the hit from China's corporate crackdowns, which drove its stock to a five-year low in 2022. It has not benefited as much as peers such as Alibaba Group from this year's artificial intelligence (AI) boom, nor has it suffered from extreme competition like Meituan. Shares of Tencent are trading at 17.6 times estimated forward earnings, below their five-year average of 20 times. Meta and Sony are both at around 22 times while Japanese video game company Nintendo trades at nearly 40 times – all three of those reached new record share prices last week. 'I have no doubt that Tencent will return to historical levels,' said Morningstar analyst Ivan Su. The market still is not factoring in how much AI will help the company's advertising and gaming businesses, but 'I think those earnings revisions will eventually come through.' Top stories Swipe. Select. Stay informed. Singapore Sengkang-Punggol LRT line back to full service: SBS Transit World US trade team will meet Chinese officials in two or three months, Bessent says Singapore From survivable to liveable: The making of a green city Asia DPM Gan kicks off India visit in Mumbai as Singapore firms ink investment agreements Multimedia World Photography Day: Celebrating the art of image-making World Ukraine, sidelined in Trump-Putin summit, fights Russian grab for more territory Opinion Singpass use in dating apps raises difficult questions Singapore SG60: Many hands behind Singapore's success story Even still, while many Chinese firms are seeing margins squeezed by price wars, the average estimate for Tencent's 12-month forward earnings per share has climbed to an all-time high. Its earnings report is expected to show revenue rose 11 per cent in the three months ended June, a third-straight quarter of double-digit growth. Advertising momentum is a key point, 'especially if its AI efforts help drive growth momentum in its video accounts services,' said Ms June Lui, a portfolio manager at Polen Capital. 'Tencent has a diversified business portfolio and that helps make it more defensive than peers from headwinds like tariffs and macroeconomic uncertainties,' she said. Investors have turned more sanguine, with the cost of hedging against declines in shares of Tencent dropping from a peak in April. The street is overwhelmingly bullish on Asia's second-largest stock, with its 66 buy recommendations the most in the region. Beyond earnings, the market is looking forward to the Aug 19 launch of Valorant Mobile, a highly-anticipated shooting game. The title should help drive Tencent's revenue from later this year through the first half of 2026, according to Goldman Sachs. Meanwhile, 'Delta Force is emerging as a potential franchise-level evergreen game,' analyst Ronald Keung wrote in a note last week. 'Gaming remains a sector with strong-visibility cash generation –particularly at a time when much of China internet transaction-based platforms are seeing earnings pressure.' BLOOMBERG
Business Times
38 minutes ago
- Business Times
Evergrande to delist in milestone for China housing crisis
[HONG KONG] China Evergrande Group said that its Hong Kong stock will be delisted, marking the end of an era for the former high-flying developer whose demise came to symbolise the country's property bust. The Guangzhou-based company said that the stock exchange has decided to cancel its listing, according to a filing to the Hong Kong bourse on Tuesday (Aug 12). The shares will be removed on Aug 25 and the company will not apply for a review of the exchange's decision, it added. Evergrande's collapse was by far the biggest in a crisis that dragged down China's economic growth and led to a record spate of distress among builders. The company, which first defaulted on a US dollar bond in December 2021, was once the country's largest developer by sales, and was worth more than US$50 billion in 2017 at its peak. In a separate filing on Tuesday, court-appointed liquidators said that Evergrande's debt load is far bigger than earlier estimated, and any 'holistic' restructuring is out of reach. The clock started ticking for the delisting in late January last year, when Evergrande received a liquidation order from a Hong Kong court and trading of its shares was suspended. It has remained halted since then, having failed to meet requirements for a resumption of trading. In Hong Kong, a stock can be delisted if suspension lasts 18 months or longer. The move will further diminish hopes for any recovery for Evergrande's shareholders, who have seen the value of their investment evaporate in recent years. A NEWSLETTER FOR YOU Tuesday, 12 pm Property Insights Get an exclusive analysis of real estate and property news in Singapore and beyond. Sign Up Sign Up Shares of Evergrande last traded at less than 20 Hong Kong cents on Jan 29, 2024, giving it a market value of HK$2.2 billion (S$360 million). The stock has had a low free float, with its founder Hui Ka Yan, owning a roughly 60 per cent stake. 'Whether or not there's a delisting, Evergrande's shareholders will likely have to prepare for near-total loss,' Kristy Hung, a Bloomberg Intelligence analyst, said before the announcement. 'The developer's liquidation and substantial claims from creditors who are ahead in the order suggests equity holders face a material risk of getting nothing.' Delisting risks Several other Chinese developers face similar delisting risks, according to the latest tally by the bourse. They include mid-sized builders Modern Land (China), which has been suspended for more than 16 months, and Dexin China Holdings, which received a liquidation order in June last year. To resume trading, some of them will have to file more updated audited results, have winding-up petitions withdrawn or dismissed, or have any liquidators discharged. 'The golden era of real estate is gone,' said Glen Ho, Asia-Pacific contingency planning and insolvency leader at Deloitte. 'The business model for builders has totally changed.' Evergrande still has two other units listed in Hong Kong, a property service provider and an electric vehicle maker. China Evergrande New Energy Vehicle Group, which has been suspended since April, could be delisted, Bloomberg Intelligence analysts Andrew Chan and Daniel Fan wrote in a recent note. Following its 2009 listing under the ticker 3333, Evergrande rose to become one of China's hottest stocks in its heyday, powering founder and chairman Hui to become Asia's second-richest person. Much of Hui's known wealth was derived from his controlling stake in Evergrande and the cash dividends he received from the company. Beijing's crackdown on the property sector since 2020 capped the developer's borrowing capacity, effectively cutting it off from credit markets. Following failed restructuring attempts, Evergrande was given a winding-up order in Hong Kong in 2024. Later that year, a mainland Chinese court accepted a liquidation application filed against one of its major onshore units. Evergrande's debt pile amounts to US$45 billion, according to the developer's court-appointed liquidators. The company is facing 187 debt claims, with the total amount far exceeding the US$27.5 billion of liabilities disclosed in its financial statement in December 2022, the liquidators said in a progress report released on Tuesday. The new figure is not to be taken as final since additional claims could emerge and all are subject to formal review. The liquidators said the realisation of assets has so far been 'modest' at US$255 million. Some US$167 million has been 'upstreamed' and linked to Evergrande. Stakeholders should not assume that all of the money will be available to the company due to complex ownership structures, they said. BLOOMBERG
