Circle Moves Forward With IPO Plans Backed by Major Wall Street Firms
By: Eva Baxter
Circle, the issuer of the prominent stablecoin USDC, has officially announced its intention to go public. Filing for an initial public offering (IPO), Circle aims to list its Class A common stock on the New York Stock Exchange (NYSE) under the ticker symbol "CRCL." This move marks a significant milestone for the company as it ventures into the traditional finance sector, offering investors a unique opportunity to gain exposure to the growing stablecoin market.
The IPO outlines the offering of 24 million shares of Class A common stock, with Circle directly issuing 9.6 million of these shares and the remaining 14.4 million shares being offered by existing shareholders. The price range for these shares is expected to be between $24 and $26, potentially raising up to $624 million. The company itself stands to gain approximately $250 million from its share issue, with an additional 3.6 million shares available for purchase by underwriters to cover any over-allotments, potentially increasing the funds raised to $343.2 million. Successful execution of this IPO remains contingent on regulatory approvals and prevailing market conditions.
Backing Circle's ambitious IPO is a consortium of major financial institutions. Heavyweights such as JPMorgan Chase, Goldman Sachs, and Citigroup lead this support, serving as joint active bookrunners. Additionally, Barclays, Deutsche Bank Securities, and Société Générale are acting as bookrunners, while BNY Capital Markets, Canaccord Genuity, and others take on roles as co-managers. Various other firms, including AmeriVet Securities and Drexel Hamilton, join as junior co-managers, adding robustness to the offering.
This move reflects Circle's targeted expansion within financial markets and sets a benchmark for other crypto-native companies considering similar trajectories. By providing a new avenue for investment in stablecoins, Circle's decision comes at a time when institutional interest in digital assets is intensifying. Noteworthy is the backdrop of existing support and burgeoning innovations such as collaborative stablecoin projects by financial giants and speculative talks surrounding potential strategic acquisitions involving notable crypto firms. Circle’s denial of such speculated acquisitions underscores its independent stride in capital market endeavors.
