Fintech firm Chime announced on Wednesday that it raised $864 million through its initial public offering by pricing its shares at $27 each.
The company had initially set the price range between $24 and $26 per share.
With this IPO, Chime’s valuation stands at approximately $11.6 billion on a fully diluted basis.
Chime’s IPO stands out as one of the largest public offerings by a U.S. fintech company in recent years. It comes after a market correction that saw valuations cool from the peaks reached during the post-pandemic surge in fintech and e-commerce investments.
Founded in 2012 by former Visa executive Chris Britt and Comcast alum Ryan King, Chime delivers its services in collaboration with traditional banks. Its offerings include branded checking accounts with customer-centric features like fee-free overdrafts.
Prominent investors such as Yuri Milner’s DST Global, General Atlantic, and ICONIQ Capital backed Chime, which held a $25 billion valuation during its last major funding round in 2021.
The company is scheduled to start trading on the Nasdaq Global Select Market on Thursday under the ticker symbol ‘CHYM.’
Chime’s IPO follows the successful market debut of stablecoin issuer Circle earlier in June, a move that has helped revive momentum in the U.S. IPO market, which had been sluggish due to uncertainty surrounding the Trump administration’s tariff policies.
Chime had originally planned to go public earlier this year but postponed its launch after Trump’s “Liberation Day” tariff announcement unsettled financial markets.
With a recent uptick in listings, more companies are reigniting their IPO plans, and June is emerging as a crucial window for going public before the typical summer slowdown sets in.
As of March 31, Chime reported 8.6 million active members. According to its IPO prospectus, the company generated an average revenue of $251 per active member in Q1. Members conducted an average of 54 transactions per month, with 75% of those being purchase transactions made using Chime-branded cards.
The company earns most of its revenue through interchange fees—a portion of the transaction fees that merchants pay to payment networks like Visa when customers use Chime’s debit or credit cards.
Chime’s financial performance has improved significantly, with its net loss narrowing to 39 cents per share for the year ending December 31, compared to $3.22 in 2023 and $8.12 in 2022.
Morgan Stanley, Goldman Sachs, and J.P. Morgan Chase are serving as the lead underwriters for the IPO.
