Chime is reportedly expected to launch its initial public offering (IPO) Thursday (June 12).
When it does so, the FinTech company is expected to be valued at more than $11 billion at the high end of its expected pricing range, The Information reported Monday (June 9).
Chime launched the roadshow for its IPO June 2, saying in a press release that it plans to offer 32 million shares with an IPO price expected to be between $24 and $26 per share.
It was reported at the time that at the top of that range, Chime would have a fully diluted valuation of about $11 billion, which would be down from the peak valuation of $25 billion it achieved in a 2021 funding round.
As of Monday evening, the FinTech company had not updated its June 2 filing with the Securities and Exchange Commission (SEC) to include an IPO price or date, according to a search of the SEC’s Edgar database.
That filing said the preliminary prospectus was subject to completion.
According to Monday’s article from The Information, Chime’s peak valuation in 2021 was driven in part by its tripling of its revenue in 2020, a high-profile deal that put its logo on an NBA team’s jerseys, a promotion that encouraged consumers to deposit their stimulus checks with it, plummeting interest rates and soaring FinTech valuations.
After the pandemic, the company saw slowing growth and reports of fraudulent payments, the report said.
When Chime filed for a proposed IPO on May 13, it said in its Form S-1 that it addresses “the most critical financial needs of everyday Americans,” including spending, liquidity, credit building, savings, community, support and safety.
The company added that it had 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.
Source PYMNTS / The Information
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