Chime, a consumer financial technology company, recently announced that it has launched the roadshow for the initial public offering of its “32,000,000 shares of its Class A common stock, 25,900,765 of which are being offered by Chime and 6,099,236 of which are being offered by certain existing stockholders.”
In addition, Chime intends to grant the underwriters “a 30-day option to purchase up to an additional 4,800,000 of its Class A common stock.”
The initial public offering price is expected to “be between $24.00 and $26.00 per share.”
Chime has applied to list its Class A common stock on the Nasdaq Global Select Market under the ticker symbol “CHYM.”
Morgan Stanley, Goldman Sachs & Co. LLC and J.P. Morgan “will act as lead book-running managers for the proposed offering. Barclays will act as an additional book-running manager.”
Evercore ISI, UBS Investment Bank, Deutsche Bank Securities, Piper Sandler and Wolfe | Nomura Alliance “will act as bookrunners.”
William Blair, Canaccord Genuity, Keefe, Bruyette & Woods, A Stifel Company, First Citizens Capital Securities and Texas Capital Securities “will act as co-managers.”
The proposed offering will be made only by means of a prospectus.
A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has “not yet become effective.”
As clarified in the update, these securities may “not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective.”
As covered, Chime is a financial technology company founded “on the premise that core banking services should be helpful, easy, and free.”
Chime says that it builds products that “allow the company to succeed when its members do.”
That’s why Chime claims that it “doesn’t rely on punitive fees such as overdraft, monthly service, or minimum balance fees.”
Member deposits are FDIC-insured “through The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, up to applicable limits.”
“Wolfe | Nomura Alliance” is the marketing name used by Wolfe Research Securities and Nomura Securities International, Inc. in connection “with certain equity capital markets activities conducted jointly by the firms.”
Both Nomura Securities International, Inc. and WR Securities, LLC are serving “as underwriters in the offering described herein.”
In addition, WR Securities, LLC and certain of its affiliates “may provide sales support services, investor feedback, investor education, and/or other independent equity research services in connection with this offering.”
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