Chime, last valued at $25B, aims for $11B in upcoming IPO

Chime, the financial technology company, is gearing up for an upcoming IPO that is projected to be one of the standout events of 2025. On Monday, the company announced a share price range between $24 and $26, which would give it a market capitalization of approximately $11.2 billion. At the midpoint of this range, Chime stands to generate around $800 million, benefiting both itself and a select group of investors, including prominent European venture capital firm Cathay Innovation, which intends to divest some of its shares during the IPO. While the current IPO climate is sluggish, Chime's offering is notable, though it may not eclipse CoreWeave's recent $1.5 billion IPO, which valued the company at $23 billion. Chime is drawing attention due to its impressive revenue trajectory and reduced expenses. The company reported revenues of $1.3 billion in 2023 and is projected to reach $1.7 billion in 2024, with over $518 million already secured in the first quarter of 2025. Furthermore, its losses have significantly decreased from $203 million in 2023 to just $25 million in 2024. Despite its last private valuation of $25 billion, as estimated by PitchBook, Chime's target for the IPO may not deter investor interest. Should demand for the stock surge, the IPO could price above the anticipated range. Additionally, if retail investors show enthusiasm on the opening day, the valuation is likely to rise even further. Notably, insiders appear optimistic about this outcome, as Chime's largest shareholders, aside from Cathay, have chosen to retain their stakes, according to the latest filings. Prominent investors such as Yuri Milner’s DST Global, Michael Stark’s Crosslink Capital, and Len Blavatnik’s Access Industries, alongside venture capital firms like General Atlantic, Menlo Ventures, and Iconiq, remain committed to their investments. The IPO is expected to take place during the week of June 9.