Digital banking startup Chime targets $11.2 billion valuation in US IPO
Digital banking startup Chime Financial said on Monday it was targeting a valuation of up to $11.2 billion on a fully diluted basis in its long-awaited New York initial public offering, underscoring the growing momentum in the new listings market.
San Francisco, California-based Chime and some of its existing shareholders are seeking to raise up to $832 million by offering 32 million shares priced between $24 and $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 U.S. 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.
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 $750 million in a 2021 funding round at a $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 U.S. 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 J.P. Morgan are the lead underwriters for the IPO offering. Chime will list on the Nasdaq under the symbol 'CHYM'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
3 hours ago
- CNA
Higher metals tariffs kick in as deadline for 'best' offers arrives
The US tariff rate on most imported steel and aluminium will double on Wednesday (Jun 4) as President Donald Trump ratchets up a global trade war on the same day he expects trading partners to deliver their "best offer" in bids to avoid punishing import tax rates on other goods from taking effect in early July. Trump late on Tuesday signed an executive proclamation that puts into effect from Wednesday his surprise announcement last week that he was taking the tariffs on steel and aluminium imports that had been in place since March to 50 per cent from 25 per cent. "We started at 25 and then after studying the data more, realised that it was a big help, but more help is needed. And so that is why the 50 is starting tomorrow," White House economic adviser Kevin Hassett said in explaining the move at a steel industry conference in Washington on Tuesday. The increase comes into effect at 12.01am (12.01pm Singapore time). The increase applies to all trading partners except Britain, the only country so far that has struck a preliminary trade agreement with the US during a 90-day pause on a wider array of Trump tariffs. The rate for steel and aluminium imports from the UK - which does not rank among the top exporters of either metal to the US - will remain at 25 per cent until at least Jul 9. About a quarter of all steel used in the US is imported, and Census Bureau data shows the increased levies will hit the closest US trading partners - Canada and Mexico - especially hard. They rank No 1 and 3, respectively, in steel shipment volumes to the US. Canada is even more exposed to the aluminium levies as the top exporter to the US by far at roughly twice the rest of the top 10 exporters' volumes combined. The US gets about half of its aluminium from foreign sources. The unexpected increase in the levies jolted the market for both metals this week, especially for aluminium, which has seen price premiums more than double so far this year. With little current capacity to increase domestic production, import volumes are likely to be unaffected unless the price increases undercut demand. "BEST OFFER" DUE DATE Wednesday is also when the White House would like trading partners to submit their proposals for deals that might help them avoid Trump's hefty "Liberation Day" tariffs from taking effect in five weeks. Administration officials have been in active talks with a number of countries since Trump announced a pause on those tariffs on Apr 9, but to date only the UK deal has come to fruition. Even that agreement, which provided the basis for the carve out from the metals tariffs, is more of a preliminary framework for more talks. With just weeks remaining, the Trump team is eager to bring more deals over the line. Reuters reported on Monday that the US Trade Representative was asking countries to list their best proposals in a number of key areas, including tariff and quota offers for purchase of US industrial and agricultural products and plans to remedy any non-tariff barriers. In turn, the letter promises answers "within days" with an indication of a "landing zone," including what tariff rates countries can be expected to be saddled with after a 90-day pause on the tariffs expires on Jul 8. At issue for most trading partners is whether they retain the current baseline rate of 10 per cent on most exports to the US after that date, or something sharply higher in many cases. White House spokeswoman Karoline Leavitt confirmed the report on Tuesday, saying: 'USTR sent this letter to all of our trading partners just to give them a friendly reminder that the deadline is coming up." Other items requested by the Trump administration include any commitments on digital trade and economic security, along with country-specific commitments, according to the letter.
CNA
5 hours ago
- CNA
Roblox down for tens of thousands of users in the US, Downdetector shows
Video game maker Roblox was down for tens of thousands of users in the U.S. on Tuesday, according to outage tracking website There were more than 99,000 incidents of people reporting issues with Roblox as of 7:27 p.m. ET, Downdetector showed.
CNA
7 hours ago
- CNA
NYSE Arca submits filing for listing of Truth Social Bitcoin ETF
NYSE Arca on Tuesday submitted a filing to the U.S. markets regulator seeking regulatory approval to list the Truth Social Bitcoin ETF. Spot bitcoin ETFs have gained popularity since their January 2024 debut, drawing billions in inflows as investors seek regulated, liquid exposure to the cryptocurrency. In February, the Trump Media and Technology Group applied to trademark six investment products that track bitcoin and the U.S. manufacturing and energy sectors. U.S. President Donald Trump is the majority owner of TMTG, which runs the social media platform Truth Social. The filing, known as a Form 19b-4, is a requirement that organizations such as stock exchanges submit to the U.S. Securities and Exchange Commission to propose a rule change or to list a new product. It's a key procedural step before an exchange can begin listing and trading a new fund or instrument. The fund will seek to reflect the performance of bitcoin and has been "designed to remove the obstacles represented by the complexities and operational burdens involved in a direct investment in bitcoin." Bitcoin has gained 12.7 per cent so far this year and is trading above $105,000.
