US-based fintech firm Chime has launched its initial public offering (IPO), offering 32 million shares of its Class A common stock.
Of these, Chime is selling 25.9 million shares, while certain existing stockholders are offering approximately 6.1 million shares.
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According to media reports, the firm will go public at an estimated valuation of around $11bn, an over 50% decrease from its $25bn valuation in 2021.
The company, which filed for an IPO last month, has also proposed a 30-day option for underwriters to purchase up to an additional 4.8 million Class A shares.
The price range for the IPO is set between $24 and $26 per share.
Chime applied to list its Class A common stock on the Nasdaq stock exchange under the ticker symbol “CHYM”.
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By GlobalDataThe net proceeds from the IPO are intended for general corporate purposes, including working capital, operating expenses, and capital expenditures.
Chime may also consider using a portion of the funds for potential acquisitions or investments in complementary businesses, though no specific agreements have been made.
Leading the offering are Morgan Stanley, Goldman Sachs, and J.P. Morgan as lead book-running managers.
Barclays served as an additional book-running manager.
Other participants in the bookrunning process include Evercore ISI, UBS Investment Bank, Deutsche Bank Securities, Piper Sandler, and Wolfe | Nomura Alliance.
Co-managers for the IPO include William Blair, Canaccord Genuity, Keefe, Bruyette & Woods, A Stifel Company, First Citizens Capital Securities, and Texas Capital Securities.
