(Reuters) -Digital banking startup Chime Financial said on Monday it was targeting a valuation of up to $9.47 billion in its long-awaited New York initial public offering, in what would be the biggest U.S. listing since President Donald Trump’s sweeping tariffs.
San Francisco, California-based Chime and some of its existing shareholders are seeking to raise up to $832 million by offering 32 million shares priced between $24 and $26 apiece.
Chime is offering 25.9 million shares in the offering, while certain shareholders, including venture capital firm Cathay Innovation, are putting up 6.1 million shares.
The U.S. IPO market has sprung back to its feet after a disappointing April as equities rebounded amid easing volatility, paving the way for companies to go public after tariff-driven chaos shut the window for weeks.
Recent listings, including retail trading platform eToro, have been well-received by investors. Analysts say the stage is set for a broader IPO pickup, but stability needs to last longer before the window fully reopens.
“Momentum is building after the tariff-related volatility. Right now, investors want to see fundamentally strong companies with attractive valuations,” said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.
“It comes down to which companies are willing to go public at a valuation available in the public market.”
Chime, founded in 2012, offers banking products such as checking and high-yield savings accounts through its app.
The company raised $750 million in a 2021 funding round at a $25 billion valuation. Its major backers include Yuri Milner’s DST Global, private equity firm General Atlantic and investment firm ICONIQ.
Morgan Stanley, Goldman Sachs and J.P. Morgan are the lead underwriters for the IPO offering. Chime will list on the Nasdaq under the symbol ‘CHYM’.
Chime plans to use a portion of its IPO proceeds to settle tax obligations related to employee-restricted stock units.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shreya Biswas)
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