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TechCrunch
3 days ago
- Business
- TechCrunch
Chime, last valued at $25B, aims for $11B in upcoming IPO
Chime, whose pending IPO is expected to be one of 2025's blockbuster hits, issued a share price range on Monday of $24 to $26. That's an up-to-$11.2-billion market cap. At the mid-range, the company will raise $800 million for itself and a handful of investors, including European VC powerhouse Cathay Innovation, who plan to sell some shares in the IPO. Even in these slow IPO times, this wouldn't be the biggest IPO of 2025. Coreweave, which raised $1.5 billion, and was valued at $23 billion, holds that title. This, even though Coreweave had hoped for far more from its IPO. Still, Chime's IPO is one to watch given that the company is reporting fast revenue growth and falling expenses. It reported $1.3 billion in revenue in 2023 and $1.7 billion in 2024 — and it has already booked over $518 million in the first quarter of 2025. Losses shrank from $203 million in 2023 to $25 million in 2024. The only black eye for Chime is that its last known private valuation was $25 billion, according to Pitchbook's estimates, far higher than this target. But that doesn't mean much. If investors are hot for this stock, it will price its IPO above the target range. And if retail investors want it on its first day of trading, its valuation will pop from there. And there's at least one strong indication that insiders think it will do that: Even with the thirst for liquidity in venture these days, aside from Cathay, Chime's largest shareholders are not, at this juncture, selling, according to its latest filing. We'll see if another filing reveals more insider sales. But other major investors that are holding their stakes include billionaire Yuri Milner's DST Global, Michael Stark's Crosslink Capital, and billionaire Len Blavatnik's Access Industries, as well as VC firms General Atlantic, Menlo Ventures (led by board member Shawn Carolan), and Iconiq, according to the paperwork. The IPO is currently expected to happen sometime during the week of June 9.
Business Times
3 days ago
- Business
- Business Times
Digital banking startup Chime targets US$11.2 billion valuation in US IPO
[BENGALURU] Digital banking startup Chime Financial said on Monday (Jun 2) it was targeting a valuation of up to US$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 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
CNA
4 days ago
- Business
- CNA
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'.
