Chime (NASDAQ:CHYM) is the most recent Fintech to trade shares on an exchange in an initial public offering (IPO).
Chime priced its shares at $27/each. The issuance generated $864 million for the company. Shares traded as high as $44.94 today in the IPO, closing down from that at $37.11, which was still a 37.44% increase for the day. The market cap now stands at $12.33 billion. Insiders sold 6,099,235 shares, generating $165 million of liquidity for these shareholders.
Chime is a neobank that offers bank-like services by partnering with other regulated firms. For example, Chime banking services, including Chime Visa cards, are issued by The Bancorp Bank or Stride Bank. While a digital bank is a chartered institution, Chime adds value by providing a better experience for users in an entirely digital environment.
Founded in 2012 by Chris Britt and Ryan King, the duo saw fertile ground to provide banking services better than legacy banks.
Today, Chime reports 8.6 million “members, “with 67% having Chime as their primary bank account. Among adults earning up to $100,000 annually, Chime reports that it is the top brand for people establishing new, or switching existing, direct deposit relationships.
Chime’s full-year revenue in 204 was $1.67 billion. For Q1 2025, Chime is reporting solid growth.
Chime’s successful IPO follows the blockbuster blowout of Circle, a stablecoin issuer, as Fintechs may be poised for a solid year of companies going public.