Circle IPO Sees 168% Surge, Bolstering Crypto Market
Circle, a leading issuer of the USDC stablecoin, concluded its first day of trading at $83.23 per share. This represents a remarkable 168% increase from its initial public offering (IPO) price of $31.
Strong Investor Interest in Crypto and Stablecoins
This impressive first-day performance indicates strong investor confidence in both the cryptocurrency market and stablecoins like USDC. The surge may encourage higher IPO pricing for upcoming listings, including companies like Omada Health and Klarna.
From $6.1 Billion to $16.7 Billion Market Cap
While Circle's initial IPO price valued the company at $6.1 billion, lower than its $7.7 billion private valuation in 2021, the first-day surge propelled its market capitalization to $16.7 billion (excluding employee options). The offering raised approximately $1.1 billion for Circle.
Joining the Ranks of "Down-Round" IPOs
Circle joins other companies like Hinge, ServiceTitan, and Reddit, whose IPOs were priced below their private market valuations. However, the subsequent stock performance demonstrates that this trend isn't deterring startups from going public.
A Second Chance at Going Public
This successful IPO comes after a previous attempt in 2022 to merge with a SPAC at a $9 billion valuation. This time, Circle's largest outside shareholders, General Catalyst and IDG Capital, held approximately 8.9% and 8.8% of all stock before the offering, respectively. Other notable investors include Accel, Breyer Capital, and Oak Investment Partners, as detailed in the company's S1 filing.
You can find more information in the S1 filing.
