Initial public offerings (IPOs) are known as a great way for investors to get big returns in a relatively short time. On average, they can bring 40% returns in the first 3 months. Once the initial funding stages are out of the way, IPOs can be a great way for companies to gain exposure to the open market and continue their growth. If you’re into neobanks and thinking of investing into the fastest-growing US fintech company, you might have wondered, “is Chime publicly traded?” Read on to find out about Chime stock IPO and all the important information about Chime IPO 2022.
Chime History
Chime is an American fintech company that provides mobile banking services to customers in the US. The company was founded in San Francisco in 2013 by Chris Britt and Ryan King with the idea of making banking more convenient and affordable.
The service offers a mobile-first interface, but registered users can also log in on the web. Chime does not charge many of the traditional banking fees, it provides accounts free of charge, offers free fast payments, fee-free overdrafts and credit cards, and has other features like automatic saving. Chime generates most of its revenue from currency exchange fees, but they also charge a $2.50 fee for over-the-counter withdrawals and when taking cash out of an ATM that is not part of Chime’s impressive network of over 60,000 ATMs.
Chime is a technology company and not a financial institution, and although they had to stop using the word “bank” in its description due to pressure from California regulators, that’s pretty much what it is to the end user. The company is partnered with The Bancorp Bank and Stride Bank, who operate the accounts for them. This structure is similar to other US neobanks, such as Current and Aspiration, who also provide current accounts through partner banks but aren’t banks themselves. Chime is the largest neobank in the US with over 13 million account holders.
Like other neobanks, Chime does not have physical branches, which became important during the 2020 lockdowns since many traditional banks were not prepared to move all their services online. This period was a major contributor to the company’s growth. Chime generated $600 million in revenue and doubled its user base from 5 million users the previous year to 10 million users in 2020. One of the popular features was the ability to get an advance on stimulus checks, which meant users could borrow $1,200 before the government actually paid the money.
In September 2020, the company raised $485 million in a funding round and had a valuation of nearly $15 billion. Perhaps it was around that time that the company’s management started asking themselves, “when is Chime going public?” CEO Chris Britt announced in the same month that the company was getting ready for an IPO in the following 12 months.
Read on to find out about Chime IPO date and price and other key info.
Chime Public Listing Key Data and IPO Date
Chime IPO Date: TBA
Ticker: N/A
Exchange: Nasdaq
IPO stock price: N/A
Valuation at IPO: $35-45 billion
Market cap: N/A
CEO: Chris Britt
Category: Fintech
Listing method: Traditional
Chime IPO was originally planned for March 2022 with a valuation between $35 and $45 billion. But this plan was pushed back to the second half of 2022 because fintech stocks have declined 40% since October 2021.
Most likely it will launch its IPO on Nasdaq like most fintech companies do. We don’t yet know any of the other details like their IPO date, future stock symbol and reference stock price.
CEO and Founder Chris Britt, who owns an undisclosed stake in the company, has an estimated net worth of $2.2 billion. Some of his capital may come from his previous engagements at Visa and card company Green Dot.
In March 2021, Britt said that the company would consider all the available options four going public, including a direct listing, traditional IPO, and SPACs.
Going public by merging with a special purpose acquisition company (SPAC) has been a popular way for startups to go public in the last couple of years. This makes the IPO process cheaper and more straightforward, but has its downsides like giving up too much equity. Many of these IPOs didn’t do too well, but perhaps it’s more to do with the current market conditions.
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So What About Investing Now?
Although Britt has indicated that Chime has “every intention of being a large, independent public company,” their IPO date remains private like the company itself.
This means that the only way to invest in it now is by taking part in a private funding round. Otherwise investors have to wait until the company goes public, which is expected to happen by the end of 2022.
So the question is, should you invest when they do go public? Although many recent IPOs were disappointing if not complete flops, Chime is a great company in a great market.
People are opening accounts again after the pandemic slump, and many are flocking to newer, cheaper and more convenient services that neobanks offer. And they seem to do it not only because that will get them additional market share, but also out of a desire to offer free banking services to people at a time when every penny counts.
The banking system is old, clunky, expensive and in need of disruptive forces like neobanks. This is why companies like Chime are in a position to do well over time, even if the ongoing conflict in Ukraine leads to further financial crises. Until then we’ll have to wait and see. Clearly the company is sensible enough to choose a good time for their IPO considering what’s been happening since the beginning of the year, so investors can expect this to be a good opportunity when it does come around.
Check back to this page for the Chime IPO price when it becomes public. Check out our IPO section to look at other scheduled IPOs.
If you want to find companies that match your interests, investment goals and portfolio, try Gainy for some great IPO investment ideas, as well as established blue-chip companies and a variety of other assets.
FAQ
When is the Chime IPO date?
The Chime stock IPO date has not been announced yet. The launch was originally planned for March 2022 but was postponed until the second half of the year.
Is Chime a public company?
No, until Chime launches its IPO the company will remain private.
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