Circle Internet Group, Inc., the fintech company behind the second-largest stablecoin in the market (USDC), has taken a major step towards becoming a publicly traded company.
The platform announced on Tuesday that it has filed for an initial public offering (IPO) on the New York Stock Exchange (NYSE) under the ticker symbol “CRCL”, a move that came after years of trying to go public. According to the announcement, Circle will be selling 24 million shares of its Class A common stock at an IPO price ranging from $24 to $26 per share.
Out of the stipulated amount, the company is offering 9.6 million shares, while the selling stockholders are offering 14.4 million shares. In addition, the firm is expected to grant a 30-day option to the underwriters to purchase up to an additional 3.6 million shares of Class A common stock to cover over-allotments.
Circle to Raise $600M in IPO
In its upcoming IPO, Circle plans to raise approximately $600 million, according to the S-1 registration form it filed with the U.S. Securities and Exchange Commission.
The company itself will receive around $240 million from the sale, while existing shareholders will receive about $360 million. Based on the proposed share price, Circle’s overall value is estimated to be around $5.43 billion.
“The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” Circle added.
Despite uncertainties regarding the turnout of the offerings, ARK Investment Management and its related companies intend to purchase up to $150.0 million of shares of the Class A common stock.
Circle Lays Groundwork for IPO
Ahead of the IPO, Circle recently partnered with JPMorgan Chase and Citi as underwriters. In its latest announcement, Circle also revealed that the two U.S. banks, along with Goldman Sachs, will act as joint lead active bookrunners for the offering, while Barclays, Deutsche Bank Securities, and SOCIETE GENERALE will act as bookrunners.
Other entities participating in the offering include co-managers like BNY Capital Markets, Canaccord Genuity, Needham & Company, Oppenheimer & Co., and Santander. Meanwhile, AmeriVet Securities, Drexel Hamilton, Mischler Financial Group, Inc., and Roberts & Ryan will act as junior co-managers.
Earlier this month, Circle’s prospects of going public dimmed after reports emerged that the platform had informal talks with Coinbase and Ripple about a potential sale.
