Stablecoin giant Circle (CRCL) will debut on the New York Stock Exchange tonight! Expanding its fundraising scale to $1.1 billion, pricing at $31 per share, exceeding expectations
Circle Internet Group expanded its IPO size on Wednesday Eastern Time, raising nearly $1.1 billion, priced at $31 per share, exceeding market expectations, marking a broader recognition for the stablecoin issuer. This IPO is underwritten by JPMorgan Chase, Citigroup, and Goldman Sachs, and is expected to be listed on the New York Stock Exchange on Thursday, with the stock code CRCL. This pricing gives it a market capitalization of $6.9 billion, with a fully diluted valuation of approximately $8.1 billion. At this time, the U.S. Congress is reviewing stablecoin regulatory legislation, which may enhance its legitimacy
According to Zhitong Finance APP, Circle Internet Group (CRCL.US) and some of its shareholders expanded their initial public offering (IPO) scale on Wednesday Eastern Time, raising nearly $1.1 billion and pricing above the previous market expectation range, marking a broader market recognition for the stablecoin issuer. According to a statement, the company and its co-founder and CEO Jeremy Allaire sold 34 million shares at a price of $31 per share.
The IPO is led by JPMorgan Chase, Citigroup, and Goldman Sachs, with shares expected to be listed on the New York Stock Exchange on Thursday Eastern Time under the ticker symbol CRCL.
Based on the number of outstanding shares listed in Circle's filings, this pricing gives it a market capitalization of $6.9 billion. Including employee stock options, restricted stock units, and warrants, the company's fully diluted valuation is approximately $8.1 billion.
This IPO comes as legislation regarding stablecoins (digital tokens typically pegged to the U.S. dollar or other currencies) is being reviewed by the U.S. Congress, a development that could grant stablecoins greater legitimacy while also attracting competitors, as several major Wall Street banks are exploring whether to issue their own stablecoins.
Documents submitted by Circle cite data from CoinMarketCap showing that as of the end of March, its issued USDC stablecoin accounted for about 29% of the market share. Its official website indicates that as of May 29, the circulation of USDC was approximately $61 billion.
The statement shows that Circle sold 14.8 million shares in this IPO, while selling shareholders reduced their holdings by 19.2 million shares. Insiders revealed that the expanded scale of the transaction generated strong demand, with subscriptions exceeding the available shares by 25 times by the order deadline on Tuesday.
Earlier submitted documents by Circle indicated that its IPO target was raised to 32 million shares on Monday, with a pricing range of $27 to $28 per share, higher than the initially planned 24 million shares ($24 to $26 per share).
Documents show that ARK Investment Management, a technology-focused investment firm founded by Cathie Wood, intends to purchase up to $150 million in shares in Circle's IPO. Insiders stated that BlackRock plans to acquire about 10% of the shares in this IPO.
Data shows that BlackRock manages a government money market fund on behalf of Circle, which holds 90% of its reserve assets in USDC stablecoin. According to Circle's official website, as of May 29, the size of Circle's reserve fund reached $53.3 billion.
According to data provider PitchBook, Circle was valued at $7.7 billion after a round of financing in 2022. The company had previously submitted a confidential listing application in early 2024, and over a year ago, it abandoned plans to go public through a merger with a blank-check company, which at that time valued Circle at $9 billion
