Chime, the leading consumer finance fintech company, will begin trading on its initial public offering (IPO) this Thursday. The shares will be priced at $27 per share. This pricing gives the company an implied valuation of just over $11.6 billion. This new offering will be an important inflection point for the fintech sector. It comes following a historic freeze in the IPO pipeline that has affected dozens of companies.
The recent years have seen rising interest rates and valuation resets, which have kept many late-stage companies, including Chime, on the sidelines. With this latest IPO on the horizon, Chime hopes to cut through the dullness that has taken hold of the fintech sector. The stock will be listed on the Nasdaq under ticker symbol CHYM. This decision provides an opportunity for investors to participate in the rapid commercialization efforts.
Chime’s new quarterly report goes on to flaunt its financial feathers. The mobility company announced a 32% increase in revenues to $518.7 million for the quarter compared to last year’s third quarter. The company had the benefit of positive sector-wide growth. Its bottom line contracted with net income falling to $12.9 million from $15.9 million a year ago. This dramatic change highlights the continued difficulty for all fintech companies of maintaining growth while achieving a path to profitability with a changing economic backdrop.
Chime’s debut will be directly preceded by the successful debuts of other fintech companies. Just last month, eToro’s stock skyrocketed 29% to open on Nasdaq when it listed directly. Cryptocurrency company Circle had a similar reception as it entered the public markets last week. Taken together, these developments may lead to a new wave of excitement for fintech IPOs. As such, even more corporate opportunists could get on board.
All fintech companies are not continuing down the path of going public. Fintech online lender Klarna has postponed its offering, due to massive quarterly losses that have spooked investors. The company’s net loss increased from $15.9 million to $12.9 million year-over-year. This change reflects the larger, unprecedented struggles taking place across the industry.