Chime plans to list its shares on the Nasdaq exchange in New York, testing investors’ interest in tech listings at a time of heightened uncertainty for global trade. Morgan Stanley, Goldman Sachs and JPMorgan will be lead underwriters of Chime’s offering.
Tech stocks took a hit when the US president announced the tariffs in early April. However, over the last month, the situation was diminished as Trump agreed to preliminary deals with China and the UK.
Initially, Trump’s tariff announcements led bankers and firms to postpone anticipated IPO plans in Q1 2025, leading to a more challenging economic landscape than anticipated. Companies such as Klarna and eToro delayed their US IPO plans due to growing fears over trade tensions. The IPO market has witnessed a slowdown since Trump began his second term, with minimal hopes of a rebound for larger deals under the Republican administration following high interest rates. However, US stocks revived over the past month, as better-than-expected inflation figures and news of Trump’s deal with China to reduce tariffs.
Chime announced its plans in December 2024, when it submitted a confidential filing with the US Government for the development of its IPO. It aimed to go public in 2025, once the IPO timing was finalised and the overall strategy of the release was set in place, with a valuation between USD 15 billion and USD 20 billion. A similar valuation in 2025 would rank the San Francisco-based firm alongside Klarna.
Now, Chime filed for the US IPO as its revenue rose 30% YoY to USD 1.67 billion in 2024, according to the filing with the Securities and Exchange Commission. Additionally, its net loss fell to USD 25 million from USD 230 million over the same period.
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