Latest news with #ChimeFinancial
Yahoo
a day ago
- Business
- Yahoo
Chime Financial IPO: Digital banking service sets target stock price as Nasdaq listing date nears
Ding, ding, ding! Chime Financial is finally ready to go public. This company asked most corporate employees to relocate to Chicago. The majority declined Trump administration orders Pennsylvania power plant to run through the summer Redfin: These 31 major housing markets have shifted to buyer's markets The 13-year-old digital banking services company has set a target valuation of $11.2 billion for its highly anticipated initial public offering (IPO), according to a filing Monday with the Securities and Exchange Commission (SEC). That would amount to raising roughly $832 million while offering 32 million shares, priced between $24 and $26. Per Chime's S-1 statement, the company says it has 8.6 million active members and generates $251 in revenue per active member, on average. San Francisco-based Chime intends to list its stock on the Nasdaq and trade under the ticker 'CHYM.' It has not announced a listing date. Notably, the $11.2 billion valuation is a sizable fall from the $25 billion ceiling Chime hit after a $750 million funding round in 2021—a time when many fintech companies were riding high due to the pandemic. However, it also recently disclosed that its 2024 revenue was on an uptick, hitting $1.67 billion, up from $1.28 billion a year earlier. At the same time, its net losses have narrowed during that period, from $203.2 million in 2023 to $25.3 million last year. Fast Company reached out to Chime for additional comment, but the company declined. Chime's IPO has been a long time coming and is expected to be one of the most anticipated offerings of the year. Digital banking services from non-banks and so-called 'digital challenger banks' are no longer a niche offering, according to a recent analysis from Deloitte. The report said consumers had registered some $98 billion in global digital deposits as of 2023, even as many of the new entrants offering such services are not yet turning a profit. Fintech companies have also hit stumbling blocks after getting a big boost in interest from consumers during the pandemic, and that's caused some companies in the space to put their IPO plans on ice. Perhaps most recently was Swedish fintech company Klarna, which reportedly paused its IPO plans in early April. Turmoil caused by the Trump administration's tariff regime and erratic trade policies has also thrown the IPO market off its axis, but there are signs that activity could be ramping up once again. Data from Renaissance Capital shows that year-to-date, 100 IPOs have been filed—an increase of 19% from last year—and that 81 have priced, an increase of 40%. In addition to Chime, some other anticipated IPOs that could happen this year include StubHub, Discord, Liquid Death, Panera, SpaceX, and Shein. This post originally appeared at to get the Fast Company newsletter: Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
Chime chases $11 billion valuation in IPO set for next week on Nasdaq
Chime Financial on Monday kicked off the roadshow for its much anticipated IPO that could value the neobank at roughly $11 billion, a more than 50% drop from its $25 billion valuation in 2021. Chime is scheduled to begin trading on the Nasdaq on Thursday, June 12. The impending IPO will offer 32 million shares at a price range of $24 to $26 each, according to a June 2 regulatory filing. (About 26 million is coming from Chime itself while stockholders are providing an additional 6 million.) At the top of its expected range, Chime could raise as much as $832 million. In 2021, Chime was one of the buzziest fintech unicorns when it was valued at $25 billion but valuations of fintech firms, along with venture funding, have plummeted since then. On an undiluted basis, Chime is targeting a market value of $9.47 billion. But when Chime includes items such as stock options and restricted stock units, or RSUs, its valuation jumps to about $11 billion on a fully diluted basis. Fourteen banks are listed as working on the Chime's IPO with Morgan Stanley, Goldman Sachs and JPMorgan serving as lead underwriters on the deal. Chime's offering comes at a time when the IPO market, which has crawled since 2021, is on an upswing. Circle Internet Group, which is going public later this week, increased the size of its deal and price range Monday. Circle is now looking to sell 32 million shares at $27 to $28 each, up from 24 million at $24 to $26 each. Circle, which could raise as much as $896 million, is now targeting a $7.2 billion valuation. When a company increases the size of its offering and raises its price range, this typically signals strong investor demand. Circle's IPO is said to be oversubscribed, and the company is scheduled to price the deal on Wednesday and trade Thursday. Founded in 2012, Chime offers traditional financial services, like fee-free checking and savings accounts, to lower income U.S. consumers that earn up to $100,000 a year. The startup had 8.6 million active members as of March 31, with two-thirds relying on Chime as their primary bank, according to a regulatory filing. Roughly 70% of its members use Chime to buy food, groceries, gas and utilities. As of March 31, the startup employed 1,465 workers, or 'Chimers,' spread across three offices, including one-third in San Francisco. Chris Britt, Chime's cofounder and CEO, owns the largest stake in the fintech and will have 39% of total voting power after the IPO is completed, according to the SEC filing. Ryan King, also a cofounder and Chime board member, will have about 35.5% of voting power. Neither is selling shares. Investors DST Global, which led Chime's $200 million round in 2019, will have 5.4% total voting power after the offering is completed, while Crosslink Capital will own 3% and General Atlantic will have 2%. They are also not selling shares. Among the sellers is VC firm Cathay Innovation, which is off loading the biggest chunk of stock, 3.75 million shares, and will have a 1.2% voting stake after the IPO. Cathay could make as much as $97.5 million. The regulatory filing also lists Jay McGraw, who is apparently the TV producer and son of Dr. Phil McGraw or 'Dr. Phil.' McGraw is selling 350,000 shares and at $26, he could reap $9.1 million. McGraw could not immediately be reached for comment. This story was originally featured on
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
Bloomberg
3 days ago
- Business
- Bloomberg
Chime, Holders Seek $832 Million in IPO at Reduced Valuation
Chime Financial Inc. and some of its shareholders are seeking to raise as much as $832 million from an initial public offering, which could give the San Francisco-based fintech a fully diluted valuation of as much as roughly $11 billion, a significant drop from its peak valuation in 2021. The company plans to market 32 million shares, including 6.1 million shares from selling shareholders, for $24 to $26 each, according to its filing Monday with the US Securities and Exchange Commission. At the top of that range, Chime would have a market value of $9.47 billion based on the outstanding shares listed in the filing.
The Star
3 days ago
- Business
- The Star
Digital banking startup Chime targets $9.5 billion valuation in US IPO
(Reuters) -Digital banking startup Chime Financial said on Monday it was targeting a valuation of up to $9.47 billion in its initial public offering in the U.S. 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. 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. Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters for the offering. Chime will list on the Nasdaq under the symbol 'CHYM'. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)
