Chime Prices IPO at 27 Dollars, Raises 864 Million Dollars

Chime, a prominent fintech company based in San Francisco, has successfully priced its initial public offering (IPO) at 27 dollars per share, surpassing its initial guidance range of 24 to 26 dollars. This move has raised 864 million dollars in capital, making it one of the largest IPOs in the U.S. fintech sector recently. The company's stock is scheduled to begin trading on the Nasdaq Global Select Market on June 12 under the ticker symbol "CHYM."

Chime's final pricing underscores the robust demand from investors, with the 864 million dollar raise marking one of the most significant IPOs in the U.S. fintech sector in recent times. The main underwriters for the offering were Morgan Stanley, Goldman Sachs, and JPMorgan Chase. This strong investor interest reflects the growing appeal of fintech companies, particularly those that cater to underserved populations.

Founded in 2013, Chime has established itself as a key player in the fintech industry, often referred to as the "American version of the poor man's Alipay." The company's core user base consists of Americans with an annual income of less than 100,000 dollars. By partnering with Bancorp Bank and Stride Bank, Chime offers features such as no-fee accounts and early wage access, saving users 4 to 5 business days. These features address the urgent needs of low-income groups. As of March 2025, Chime had 8.6 million active members, a 23% increase from the previous year. Of these, 67% use Chime as their primary account, making it a popular choice among low-income Americans. The company's prospectus revealed that in the first quarter of 2024, users conducted an average of 54 transactions per month, with each active member contributing an average of 251 dollars in revenue.

In addition to its core services, Chime launched the MyPay small loan product in 2023, allowing users to "consume in advance" in a manner similar to China's Huabei. This loan service contributed 12% of the company's revenue in the first quarter. The majority of Chime's revenue comes from interchange fees, which are transaction fees paid by merchants to payment networks like Visa when users make purchases with Chime debit or credit cards.

The recent IPO market in the U.S. has seen a surge in activity, with Circle, known as the "first stablecoin stock," seeing its market value soar to 22 billion dollars upon its listing. Voyager's stock price doubled on its first day of trading, rising by 116.1%. Chime's successful IPO follows these strong performances, injecting new energy into the U.S. IPO market. The company's strong pricing and investor demand highlight the growing interest in fintech companies, particularly those that cater to underserved populations.

Chime's IPO is not without its challenges. The company had originally planned to launch its IPO earlier but was forced to delay due to market volatility caused by the Trump administration's tariff policies. However, the successful launch of Circle and Voyager's strong market debut have provided a positive backdrop for Chime's entry into the public market. The company's strong pricing and investor demand reflect the growing interest in fintech companies, particularly those that cater to underserved populations.

As the IPO market continues to heat up, more companies are expected to follow suit. The upcoming summer market slowdown period is seen as a critical window for companies to capitalize on the current stable market conditions. Chime's successful IPO and strong pricing are likely to serve as a benchmark for other companies looking to go public in the near future. The company's focus on low-income users and innovative financial services positions it well to continue its growth trajectory in the competitive fintech landscape.