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June 12, 2025
Chime Stock: Chime is all set to make its debut on the Nasdaq this Thursday. The digital bank has raised $864 million through its initial public offering.
Now, all eyes are on whether it can continue the trend of strong first-day gains seen in recent listings.
This much-anticipated launch is being closely watched by investors. It’s seen as a key test for upcoming IPOs in the fintech space.
Valuations in the sector have cooled since the pandemic boom. Chime’s performance could signal what's ahead for others in the industry.
Chime and some of its early investors sold 32 million shares in the IPO. Each share was priced at $27. Earlier, the expected price range was between $24 and $26.
With this offering, the San Francisco-based company reached a fully diluted valuation of $11.6 billion. Back in August 2021, it was valued at $25 billion during a funding round.
A successful debut by Chime could set off a chain reaction. It might encourage other fast-growing companies to speed up their IPO plans. The IPO market, which had been quiet for a while, is now slowly showing signs of life.
Kat Liu, vice president at IPOX, said that if Chime’s listing is well-received, it could open the door for other long-delayed unicorns to go public.
Chime is backed by some big names. Its major investors include Yuri Milner’s DST Global, General Atlantic, and ICONIQ.
Since it was founded, Chime has raised around $2.65 billion from private investors. This is based on data from PitchBook.
Digital banks like Chime have seen fast growth in recent years. They offer low-cost, mobile-first financial services. These services are especially popular among younger users and people who are often overlooked by traditional banks.
Chime offers features like no-fee accounts and early access to direct deposits. Its easy-to-use app adds to the appeal. These services make it a more accessible option compared to traditional banks.
The fintech makes most of its money from interchange fees. These fees are collected whenever users make purchases with their debit cards.
"We’re just beginning to tap into a massive business opportunity," said Chime CEO Chris Britt in an interview with Reuters.
Britt shared that Chime currently serves less than 5% of the 200 million Americans who earn $100,000 or less each year. This group is a key focus for the company. In 2024 alone, Chime spent nearly $520 million on marketing to reach this audience.
“Our mission is to become the top player when it comes to primary accounts and recurring direct deposit accounts in our target segment,” said Chris Britt. “And we have no plans to stop there,” he added.
Chime’s IPO was led by major financial institutions. Morgan Stanley, Goldman Sachs, and J.P. Morgan served as the main underwriters for the offering.
The IPO market is starting to show signs of life again. After the 2021 boom, rising interest rates and fears of a recession led to lower valuations.
Investor demand for new listings dropped. As a result, many private companies put their IPO plans on hold.
Now, some fast-growing firms are slowly making a comeback. Circle, a stablecoin issuer, went public last week. Its stock has already surged nearly four times its IPO price.
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On Wednesday, space tech company Voyager also made a strong debut. Its shares more than doubled on the first day.
Still, some analysts urged caution. They warned that too much optimism might be risky. Ongoing uncertainty around trade talks under President Donald Trump’s administration could affect the overall market recovery.
“This may be a strong IPO window right now,” said Samuel Kerr, head of equity capital markets at Mergermarket. “But there’s no guarantee it will last,” he added.
Investors and companies have taken advantage of the temporary pause in tariffs to move forward with deals. However, overall uncertainty in the market still remains.
Several big names are drawing attention in the upcoming IPO pipeline. These include crypto exchange Gemini, buy-now-pay-later company Klarna, AI chipmaker Cerebras, and medical supply giant Medline.
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