The chime is finally available.
The San Francisco-based digital banking startup submitted plans to list its NASDAQ under the ticker symbolic chim on Monday, aiming for a fully diluted valuation of up to $11.2 billion.
Chime and its early investors are aiming to raise as much as $832 million by offering 32 million shares, priced at $24-$26 each. Of that, Chime offers 25.9 million shares, with the remaining offering 6.1 million shares (6.1 million shares), coming from existing shareholders, including VC company Cathay Innovation, Reuters reported.
Founded in 2013 by Chris Britt and Ryan King, Chime aims to help users avoid bank fees, build savings effortlessly, and manage their money with less stress. The San Francisco-based company offers a mobile-first banking experience that gives users complete control over their finances.
The startup builds its brand around a feeless bank and offers check and high yield savings accounts through a smooth app. Earn money every time users swipe through chime branded debit or credit cards. Members get chime debit cards, spending accounts, savings accounts and apps that put everything at their fingertips.
The company’s last private funding round was 2021, raising $750 million at a $25 billion valuation. Therefore, this IPO target represents a more measured approach. This is a discount that makes trading more attractive in a cautious market.
Its supporters include DST Global, General Atlantic, and Iconiq Capital.
Has the Fintech IPO market finally returned?
The IPO arrives as national market activities are once again showing signs of life. After the volatility of April, investors’ appetite appears to be returning, and was helped by a milder stock market. The US IPO window, which was temporarily closed due to tariff-related uncertainty, has a crack open.
Recent lists like Etoro have been well received, and analysts say they can set the stage for more companies to follow, assuming the market is stable.
“The momentum is gaining momentum after momentum-related volatility. Investors want to see a fundamentally strong company with an attractive rating,” said Matt Kennedy, senior strategist at IPO research firm Renaissance Capital.
Fintech IPOs once had all the rage during the pandemic, but have been slower in the past two years. Rising interest rates and inflation have cooled down the hype. Swedish giant Kraruna suspended its US IPO plan earlier this year after market conditions deteriorated.
It puts pressure on the chimes. If this IPO lands well, you may clear the other Fintech paths waiting on the wings.
“As the biggest transaction to test the market since ‘Day of Liberation’, chimes will be an attractive case study,” said Samuel Kerr, head of stock capital markets at Mergermarket.
Chime will use a portion of its revenue to cover taxes related to employee equity units.
Morgan Stanley, Goldman Sachs and JP Morgan lead the underwriting.
🚀Want to share the story?
Submit your stories to TechStartUps.com in front of thousands of founders, investors, PE companies, tech executives, decision makers and tech leaders.
Please attract attention
Source link
