Fintech company Chime said on Wednesday it raised $864 million in its initial public offering (IPO) after pricing shares at $27 each. The IPO values the company at roughly $11.6 billion on a fully diluted basis. This is higher than its previously-announced target valuation of $9.5 billion.
Chime revealed via a press release that the offering consists of 25,900,765 shares of Class A common stock to be sold by Chime and 6,099,235 shares of Class A common stock to be sold by existing stockholders (the “Selling Stockholders”). It also stated that Chime will not receive any proceeds from the sale of shares of Class A common stock by the Selling Stockholders.
READ: Digital banking startup Chime aims for $9.5 billion valuation in IPO (June 2, 2025)
Chime, founded in 2012 by former Visa Inc. executive Chris Britt and Comcast Corp. alumnus Ryan King, offers products like branded checking accounts with user-friendly features such as fee-free overdrafts. The company offers its services through partnerships with brick-and-mortar banks. It became popular by offering a free checking account and debit card where consumers could get access to their paycheck two days before other banks made it available. It has catered largely to younger Americans earning between $35,000 and $65,000.
During its IPO filing, Chime disclosed that 67% of its 8.6 million monthly active customers use Chime as their primary bank. (Consumers must use Chime for at least 15 transactions in a month or have a direct deposit into their Chime account of at least $200 per month for Chime to consider them primary-bank customers.) It also stated the company would show resilience in the event of a recession.
In its last funding round, Chime was valued at $25 billion. Its investors included Yuri Milner’s DST Global, private equity firm General Atlantic, and investment firm ICONIQ.
Chime also announced it is set to begin trading on the Nasdaq Global Select Market on Thursday under the symbol “CHYM.” In a press release, the company also revealed Morgan Stanley, Goldman Sachs & Co. LLC and J.P. Morgan will act as lead book-running managers for the offering. Barclays will act as an additional book-running manager. Evercore ISI, UBS Investment Bank, Deutsche Bank Securities, Piper Sandler and Wolfe | Nomura Alliance will act as bookrunners. William Blair, Canaccord Genuity, Keefe, Bruyette & Woods, A Stifel Company, First Citizens Capital Securities and Texas Capital Securities will act as co-managers.
According to a Fortune report, the IPO market is finally experiencing a rebound after crawling for three years, though it is uncertain if this will last. Several companies including eToro Group, Hinge Health, and MNTN, posted strong debuts in May and each has since remained above its IPO price. The best performance was by CoreWeave, an AI infrastructure company.
CoreWeave went public in late March, around the time when President Trump announced his “Liberation Day” tariffs, which caused many IPOs and deals to be put on hold. CoreWeave turned in a lackluster first day with shares closing one penny above its $40 IPO price. Its stock rose in April and really began to gain steam in May. As of late Tuesday, CoreWeave’s shares were up 287% from its $40 IPO price.