Chime looks for USD 11 billion valuation in IPO

According to a regulatory filing, the IPO is set to offer 32 million shares at a price ranging from USD 24 to USD 26 each, with approximately 26 million coming from Chime and an additional 6 million from stockholders. At the highest of its expected range, Chime could raise nearly USD 832 million.

Since 2021, when Chime was a fintech unicorn valued at USD 25 million, both the company and other fintech firms’ valuations, as well as venture funding, have plunged.  Now, on an undiluted basis, Chime is targeting a market value of USD 9.47 billion, while on a fully diluted basis and by including items such as stock options and restricted stock units, the company could see a USD 11 billion valuation. Additionally, 14 banks are listed as working on the fintech’s IPO, with it having Morgan Stanley, Goldman Sachs, and JP Morgan as lead underwriters on the deal.

Founded in 2012, Chime provides traditional financial services, such as fee-free checking and savings accounts, to lower-income US consumers who earn up to USD 100,000 a year. The company’s cofounder and CEO, Chris Britt, owns the largest share in Chime and is set to have 39% of total voting power after the IPO is completed, as detailed in the SEC filing. Additionally, Ryan King, a cofounder and board member of the fintech, will have approximately 35.5% of voting power. According to the same sources, neither of them is selling shares.

Chime’s IPO news