Digital banking startup Chime Financial plans to achieve a valuation between $9.47 billion and $9.47 billion through its New York initial public offering (IPO) following President Donald Trump’s wide-ranging tariffs. Through the IPO process Chime Financial together with its present shareholders will issue 32 million shares at prices ranging from $24 to $26 each to raise about $832 million.
Chime Financial will distribute 25.9 million shares to the market while its shareholders including Cathay Innovation will sell 6.1 million shares. The U.S. IPO market demonstrates recovery from its slow April performance because stock prices have risen as market volatility decreases. The recent successful IPOs of eToro and other companies have increased investor optimism.
The market shows increasing momentum after the volatility caused by tariffs. The current market environment shows investors selecting companies with strong fundamentals and affordable valuations according to Matt Kennedy who serves as senior strategist at Renaissance Capital. The decision to go public depends on which companies can access public market valuations.
Since its establishment in 2012 Chime has provided banking services including checking and high-yield savings accounts through its mobile application. During its 2021 funding round Chime received $750 million while its valuation reached $25 billion. DST Global together with General Atlantic and ICONIQ have invested in the company.
The underwriting process for the IPO is led by Morgan Stanley together with Goldman Sachs and J.P. Morgan. Chime Financial plans to list on the Nasdaq under the symbol ‘CHYM’ while using some IPO funds to settle tax liabilities from employee-restricted stock units.
