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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
Yahoo
14-05-2025
- Business
- Yahoo
US fintech firm Chime files for IPO
San Francisco based fintech company Chime Financial has filed a registration statement with the US Securities and Exchange Commission for its initial public offering (IPO) of Class A common stock. The fintech company has applied to list on the Nasdaq stock exchange under the ticker "CHYM." The number of shares and the price range for the proposed offering have not been disclosed. The company intends to use the net proceeds from the IPO for general corporate purposes, such as working capital, operating expenses, and capital expenditures. It may also allocate a portion of the proceeds to potential acquisitions or investments in complementary businesses, products, services, or technologies, although no specific agreements are in place. The lead book-running managers for the IPO are Morgan Stanley, Goldman Sachs & Co., and J.P. Morgan, with Barclays serving as an additional book-running manager. The underwriting team for IPO comprises Evercore ISI, UBS Investment Bank, Deutsche Bank Securities, Piper Sandler, and Wolfe | Nomura Alliance as bookrunners. William Blair, Canaccord Genuity, Keefe, Bruyette & Woods, A Stifel Company, First Citizens Capital Securities, and Texas Capital Securities are co-managers. Chime's services include fee-free mobile banking, facilitated through partnerships with Stride Bank and The Bancorp Bank. Chime reported a revenue increase to $1.67bn for the year ending 2024, compared with $1.28bn in the previous year. The company, which was valued at $25bn in 2021, has been in the news for confidentially filing for an IPO in December last year. As of 31 March 2025, the company had over 8.6 million active members, with two-thirds using Chime as their primary financial service provider. In the first quarter of 2025, these active members engaged in an average of 54 transactions per month, with three-quarters of these transactions being purchases made with Chime-branded debit and credit cards. The company's investors include Menlo Ventures, Forerunner Ventures, Sequoia Capital, Coatue Management, and Acrew Capital. "US fintech firm Chime files for IPO " was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
