Chime Aims for $11 Billion Valuation in 2025 IPO
Fintech company Chime has announced a share price range of $24 to $26 for its initial public offering (IPO), targeting a market capitalization of up to $11.2 billion. This IPO is expected to be a significant event in 2025, even amidst a slower IPO market.
At the midpoint of the price range, Chime is set to raise $800 million. This includes shares sold by the company itself and some early investors, including Cathay Innovation.
While not the largest IPO of 2025, Chime's offering is attracting attention due to the company's strong financial performance. Chime reported $1.3 billion in revenue in 2023, increasing to $1.7 billion in 2024. The company has already recorded over $518 million in revenue for the first quarter of 2025. Losses have also significantly decreased, from $203 million in 2023 to $25 million in 2024.
Chime's last private valuation was estimated at $25 billion, considerably higher than the current IPO target. However, strong investor interest could drive the IPO price above the target range, potentially increasing the valuation.
A positive sign is that major Chime shareholders, excluding Cathay Innovation, are not currently selling their shares. These investors include DST Global, Crosslink Capital, Access Industries, General Atlantic, Menlo Ventures, and Iconiq.
The IPO is expected to take place during the week of June 9, 2025.
