FinTech News
Chime IPO Details Come to Light as Roadshow Kicks Off
The popular neobank Chime is readying for its initial public offering.
About Chime’s IPO Plans:
Chime has revealed plans to go public. According to a blog post from the company, they intend to be listed on the Nasdaq Global Select Market under the ticker symbol $CHYM. In total, 32,000,000 shares of Class A common stock will be offered, including 25,900,765 shares from Chime and 6,099,236 from “certain existing stockholders.” The FinTech also plans to give underwriters a 30-day option to purchase up to an additional 4,800,000 shares of Class A common stock.
As Chime kicks off its roadshow, it’s expecting to launch its stock at a price between $24.00 and $26.00 per share. On the upper end, that would give the neobank a market cap of $11.2 billion. Previously, the company had raised $2.3 billion, including a 2021 $750 million Series G led by Sequoia Capital. That round valued the company at $25 billion.
More on Chime:
Ahead of Chime’s IPO, the company has been introducing new features and products. Most recently, in March, it rolled out a new premium membership tier called Chime+. With this upgrade, customers can currently earn 3.75% APY on savings versus the 2% APY base rate. Additionally, Chime+ members enjoy priority support, exclusive cashback offers, and more. To qualify for Chime+, members must have a qualifying direct deposit of at least $200 per month (every 34 days).
Other recent updates to Chime include the debut of Instant Loans, as well as last year’s MyCash Pay Advance. The brand is also a jersey patch sponsor of the Dallas Mavericks.
My Thoughts:
Chime has been a popular neobank for years and has raised a ton of money, so it only makes sense that the company would finally be going public. This push torward IPO may also explain why the firm has been on a tear introducing a bunch of new offerings in recent months. Of course, we’ll need to wait and see what the final price per share is once Chime wraps up its road show.
As for how Chime will perform on the market, it’s hard to say. We’ve seen some much-hyped FinTech IPOs flounder initially, with some finding success later on. For example, Robinhood stock stayed below its initial price for years before roaring to new heights relatively recently.
Personally, I don’t plan on purchasing any Chime shares for myself, but I am rooting for the company overall.
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