Key Points
- Chime Financial aims for a $9.47 billion valuation in its upcoming initial public offering (IPO) on the Nasdaq.
- Up to $832 million will be raised through the sale of 32 million shares priced at $24 to $26 each.
- The listing signals a resurgence in U.S. IPO activity after recent tariff-related volatility.
- Chime’s valuation has dropped significantly from its $25 billion private funding level in 2021.
Chime Financial, the San Francisco-based digital banking startup, announced plans on Monday to go public on the Nasdaq in a high-profile initial public offering (IPO) that could value the company at up to $9.47 billion. This marks the largest U.S. initial public offering since recent tariff-driven market disruptions under President Donald Trump’s administration.
Chime and several existing shareholders aim to raise up to $832 million by offering 32 million shares, priced between $24 and $26 each. Of those, 25.9 million shares will be offered by Chime itself, while existing shareholders, including venture capital firm Cathay Innovation, will sell 6.1 million shares.
The offering reflects growing confidence in the IPO market, which is recovering from a slump in April that was worsened by market volatility tied to global trade tensions and tariffs. With equity markets stabilizing, investor appetite for initial public offerings (IPOs) appears to be returning.
“Momentum is building after the tariff-related volatility,” said Matt Kennedy, senior strategist at Renaissance Capital. “Investors are now focused on companies with strong fundamentals and reasonable valuations.” He emphasized that success will depend on how well companies align their pricing with public market expectations.
Founded in 2012, Chime offers app-based financial services, including checking and high-yield savings accounts, targeting consumers seeking modern alternatives to traditional banking. The company previously raised $750 million in a 2021 funding round, which valued it at $25 billion, indicating a significant markdown from its IPO valuation.
Chime’s major investors include DST Global, General Atlantic, and ICONIQ Capital. The IPO is being led by major financial institutions: Morgan Stanley, Goldman Sachs, and J.P. Morgan.
The company plans to trade under the ticker symbol “CHYM” and will allocate part of the IPO proceeds to cover tax liabilities related to employee-restricted stock units.
