The IPO market has experienced an increase in activity this year compared to 2024, in terms of the number of deals and proceeds. However, tariff-related uncertainties and recessionary fears could impact the momentum in the coming months. While healthcare and technology companies continue to dominate the IPO scene, there has been strong interest from various other industries in entering the public market.
The Offering
Chime Financial, Inc., a financial technology company that provides mobile banking services, is taking the IPO route to accelerate business growth. The company has filed papers with the Securities and Exchange Commission for an initial public offering. It has applied to list the stock on the Nasdaq Global Select Market under the symbol CHYM. The team of underwriters is led by JP Morgan, Morgan Stanley, and Goldman Sachs. Other details like the number of shares being offered and the offer price are yet to be disclosed.
The management plans to use proceeds from the offering mainly for general corporate purposes, including working capital, operating expenses, and capital expenditures. A portion of the proceeds may be spent on acquisitions and to invest in products and technologies. The remaining proceeds will be used to satisfy the company’s anticipated tax withholding and remittance obligations related to the settlement of certain of its outstanding restricted stock units.
Member Growth
Ever since its founding in 2012, Chime Financial has consistently increased its active member base and introduced new products to the platform. The company generated $251 in Average Revenue Per Active Members in the first quarter of 2025, compared to $231 last year. It reported mixed results for the three months ended March 31, 2025. Revenues increased to $518.7 million from $391.9 million in the year-ago quarter. Meanwhile, Q1 net income declined to $12.9 million from $15.9 million a year earlier.
For fiscal 2024, Chime Financial reported revenues of $1.67 billion, up 31% from last year. The company incurred a net loss of $25.3 million in FY24, narrower than the $203.2 million loss it posted in fiscal 2023.
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