Neobank Chime to ride wave of IPO enthusiasm, while CoreWeave is best performing offering
- June 11, 2025
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Greetings, Term Sheeters. This is finance reporter Luisa Beltran, subbing for Allie.
After Circle’s standout IPO performance last week, all eyes are turning to Chime Financial. The well-known neobank is scheduled to begin trading on Thursday and could benefit from a rush of IPO excitement.
The company is selling 32 million shares at a price range of $24 to $26, with the final price for the offering to be set on Wednesday. Nearly 26 million of the shares being sold are coming from the company itself, while the rest will come from selling stockholders. Chime will trade Thursday on the Nasdaq under the ticker CHYM.
Founded in 2012, Chime offers traditional financial services, like fee-free checking and savings accounts, to lower income U.S. consumers who earn up to $100,000 a year. The Chime IPO appears to be oversubscribed and has seen investor demand exceeding the number of shares available by more than 10 times, according to Seeking Alpha, which cited a Bloomberg report.
After crawling for more than three years, the IPO market is finally experiencing a rebound, though it’s unclear whether that will last. Several companies, including eToro Group , Hinge Health , and MNTN , posted strong debuts in May and each has since remained above its IPO price. The best performance by a newly public company so far this year belongs to AI infrastructure company CoreWeave, despite a less than ideal start. CoreWeave went public in late March, around the time when President Trump announced his “Liberation Day” tariffs, which caused many IPOs and deals to be put on hold. CoreWeave turned in a lackluster first day, with shares closing one penny above its $40 IPO price. Its stock rose in April and really began to gain steam in May. As of late Tuesday, CoreWeave’s shares were up 287% from its $40 IPO price.
Retail investors often get shut out of the IPO market, but CoreWeave shows that there are still opportunities to invest in undervalued companies, said Matt Kennedy, senior IPO strategist at Renaissance Capital, a provider of pre-IPO research that manages two IPO-focused ETFs (NYSE: IPO, IPOS). (Shareholders who bought CoreWeave on March 31, when the stock closed at $37.08, have seen the shares soar more than 317% since then.) “Even in a hot area like AI there can be opportunities that fly under the radar,” he said.
Then there’s crypto firm Circle, which raised $1.05 billion with its IPO. Circle shares rocketed 168% during its June 5 debut. The stock gained during its next two trading sessions but lost ground on Tuesday, with shares falling 8%. Circle is currently up more than 241% from its $31 IPO price.