Initial public offerings are a great way to earn big returns in a short period of time. Hence, investing specifically in fast-developing fintech companies, such as Chime, is a good idea from a financial point of view.
Why? Well, for starters, Chime is one of the fast-growing private organizations in the U.S., with over 13 million account holders.
In this article, we’ll explore everything you need to know about Chime IPO. So, stick around!
Currently, Chime hasn’t scheduled listing dates yet. However, Chris Britt, Chime CEO and founder, announced that the company is considering going public via the direct listing and an Initial Public Offering (IPO).
They’re also considering merging with a publicly traded corporation called the Special Purpose Acquisition Company (SPAC). SPAC has been a popular way for startups to go public because they make the IPO process more affordable.
Originally, Chime IPO was supposed to launch in March 2022. However, stakeholders pushed the plan back to the end of 2022 due to the 40% decline in FinTech stocks that took place in the fall of 2021.
As a result, if you want to invest in the company, you can only take part in a private funding round. The alternative is to wait for them to go public when the time comes for them to take that step.
Chime has had significant growth over the years. Starting in September 2020, Chime achieved approximately a $14.5 billion valuation. In contrast, the company had $1.5 billion just three years prior.
Moreover, in his interview with CNBC, Chris Britt shared that Chime became profitable based on EBITDA during the global coronavirus pandemic.
However, the company’s most recent fundraising round in August 2021 amounts to $25 billion. Consequently, this puts the company’s valuation around $40 billion or more during the post-listing period.
Yet, the truth is that Chime has yet to announce what the share price will be during its launch. Although, before the IPO delay, the company had been targeting to sell its shares between $35 to $45 billion.
Should You Invest When Chime Goes Public?
While the pandemic was profitable for neobanks like Chime, publicly traded stocks took a plunge post-pandemic. One example is PayPal, which had a hard hit in the first quarter of 2022.
This is one reason why Chime remains a private company for now. Instead, they continue to launch new innovative products, like credit cards, without interest charges or annual fees.
Furthermore, it focuses more on offering services to U.S. customers who prefer online banking over traditional ones. The company is also prioritizing consumers’ evolving needs and demands.
Combined, these factors ensure that you’ll be in good hands if the time comes to invest in Chime IPO.
There you have it: our brief but thorough guide to Chime IPO. Although the company postponed its public share sale last March 2022, it’s believed there will be a statement with news of a soon-to-be IPO by the end of the year.
The information in this article is well-researched and factual but it contains opinions also and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article, we are not financial advisors we are journalists. It is recommended that you always consult with a professional before making any investment decisions.