The FinTech company plans to offer 32 million shares, and the IPO price is expected to be between $24 and $26 per share, according to a Monday (June 2) press release.
At the top of that range, Chime would have a fully diluted valuation of about $11 billion, Bloomberg reported Monday.
That figure would be down from the peak valuation of $25 billion the FinTech achieved in a 2021 funding round, according to the report.
The drop is similar to that seen by other companies that raised money during the peak pandemic years, the Bloomberg report said.
In a Monday filing with the Securities and Exchange Commission, Chime said co-founders Christopher Britt and Ryan King could hold about 40.1% and 34.4%, respectively of the voting power of Chime’s outstanding capital stock at the completion of the offering.
Chime has been considered an IPO candidate for years, PYMNTS reported in December. The company put earlier IPO plans on hold in February 2022 as the industry entered a “FinTech winter.”
When Chime filed its Form S-1 registration statement for a proposed IPO with the SEC May 13, the company said that it addresses “the most critical financial needs of everyday Americans,” including spending, liquidity, credit building, savings, community, support and safety.
It added that it has 8.6 million active members, up 82% since the first quarter of 2022, and that 67% of these active members use Chime as their primary account relationship.
Chime noted that it is a technology company, not a bank, and that its bank partners provide its FDIC-insured accounts.
“Looking ahead, with less than 5% adoption in our core target market, we see an enormous opportunity to grow for years to come,” Britt and King wrote in the Form S-1.
The push of consumers toward using apps and mobile devices for everyday financial needs has become “less wave than tsunami” since 2022, PYMNTS reported May 14.
For platforms like Chime that link with banks to deliver a range of cards, lending and account offerings, the forging of those primary relationships is gaining momentum.
