Chime Stock Surges on First Day of Trading
Chime’s IPO Marks Strong Debut as Fintech Market Heats Up
Chime, the online banking company, saw its shares jump 37% during its first day of trading on the Nasdaq Thursday. The stock closed at $37, up from its IPO price of $27.
The San Francisco-based company raised about $700 million through the IPO, while existing investors sold an additional $165 million worth of shares. The offering exceeded expectations, with shares priced above the original $24 to $26 range.
This strong debut puts Chime in line with other recent standout IPOs. On the same day, Voyager Technologies, a space and defense startup, also launched its IPO with high demand. Just a week earlier, Circle, a stablecoin provider, enjoyed a similar surge in early trading.
Unlike many startups, Chime is already profitable. In the first quarter of the year, the company posted a net income of $12.9 million. Revenue for the quarter reached $519 million, marking a 33% increase from the previous year.
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Founded in 2012, Chime raised $2.3 billion in funding between 2013 and 2021 from major investors like DST Global, Crosslink Capital, and Menlo Ventures.
Fintech IPO Activity on the Rise
The broader IPO market is showing signs of renewed energy, with fintech companies like Chime leading the way.
Another fintech firm to watch is Klarna, the Swedish buy-now, pay-later provider. Klarna had filed to go public earlier this year but delayed due to market uncertainty. With conditions improving, it may move forward with its IPO soon.
Chime’s successful debut could signal growing investor confidence in fintech and encourage more companies to enter the market in the coming months.