Circle Internet Group (NYSE:CRCL) ended the week on a high note for its initial public offering (IPO). Shares in Circle were initially priced at $31/share, but it seems underwriters may have left some money on the table as shares closed today at $107.53 each, rising by almost 30% on their second day of trading.
Yesterday, Circle closed at $83.23 – a 168% increase over its listing price. The updrift continued today with shares at one point topping $123/share.
The market capitalization of the firm now stands at around $21.5 billion, marking the most successful IPO of the year.
While insiders did sell some shares as part of the offering, the gain, if it holds, is significant for insiders. Class A common stock offered by the existing stockholders was 19,200,000 shares.
Circle sold Class A common stock to the public. Class B common stock, held by founders CEO Jeremy Allaire and P. Sean Neville, will represent 30% of the total voting power of outstanding common stock following the offering. Class B shares are convertible into A shares at a 1:1 ratio.
CEO and founder Jeremy Allaire sold about $ 50 million worth of his shares (at $32 each), but he still holds 18.5 million shares, which represent a value of over $2 billion at today’s closing price. Within days, Allaire had entered the rarified ultra-high net worth category as a multi-billionaire, as shares quadrupled in price.
While there is no telling what markets will deliver for shares of Circle next week or later, the company is tapping only a small portion of the stablecoin opportunity, as well as other complementary services.
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