On Wednesday night (June 11), the financial market witnessed the interest in FinTech companies entering the public market, particularly the appeal of digital banking. Chime made its debut on the Nasdaq exchange under the ticker CHYM. Initially, the IPO was set within a range of $24 to $26 per share, with 32 million shares offered. This would have resulted in a valuation of approximately $11 billion. Among these shares, Chime offered 25.9 million, while current shareholders sold the remainder. Additionally, underwriters, including major banks like Goldman Sachs, Barclays, and JPMorgan, had the option to purchase an additional 4.8 million shares of Class A common stock. Following the offering, there will be 332 million Class A shares outstanding. The estimated net proceeds from the sale of these shares are approximately $599.7 million, or $713.4 million if the underwriters exercise their option in full. Ultimately, Chime priced the IPO at $27 per share, raising $864 million and achieving a valuation of about $11.6 billion. This positive momentum could continue in the secondary market, as seen with other recent FinTech IPOs. According to the S-1 filing, Chime has an addressable market offering up to an $86 billion annual revenue opportunity, primarily targeting individuals earning up to $100,000 annually. The company reported $1.3 billion in payments revenue in 2024, accounting for 76% of its consolidated top line. Platform-related revenues contributed the remaining $397 million. Chime serves 8.6 million active members, with 67% using it as their primary financial provider.
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