Simply put
- Circle has revised its IPO plans, increasing both the number of shares it intends to sell and the expected price for those shares, according to new SEC filings.
- This would imply the company is aiming for a fully diluted valuation.
- Recently, Ripple attempted to acquire Circle, making a bid between $4 billion and $5 billion, but that offer was turned down.
Circle, the stablecoin issuer, is stepping up its initial public offering by boosting the forecast price and the quantity of shares it plans to sell soon on Wall Street.
The company is now looking to sell Class A common stock priced between $27 and $28 per share, as stated by the SEC on Monday. This is part of a strategy to raise up to $896 million, which is a significant increase from its initial plan last week where it intended to offer 24 million shares between $24 and $26.
Under the earlier IPO, Circle was targeting a fully diluted valuation of $6.7 billion. With these adjustments, that figure now climbs to $7.2 billion.
This change in IPO strategy suggests a growing interest among investors in new stock market offerings. The shares are set to be sold later this week, and Circle will trade under the ticker CRCL on the New York Stock Exchange.
I reached out to Circle to inquire about the reasons behind these changes, but didn’t get an immediate response.
A few weeks back, Ripple, a major player in the crypto space, sought to buy Circle for around $4 to $5 billion. It seems Circle’s leadership considered that offer too low and declined.
With the updated IPO plan, Circle will distribute 12.8 million Class A shares while shareholders plan to sell an additional 19.2 million shares. Among those shareholders are American investment firms like Catalyst and Breyer Capital, and the China-based investment firm IDG Group. It’s worth noting that the proceeds from these sales won’t go directly to Circle.
The IPO is being primarily facilitated by JP Morgan, Citigroup, and Goldman Sachs.
As the second-largest stablecoin issuer globally, behind Tether, Circle is in a noteworthy position, especially with Congress likely to enact regulations soon. This would support the stability of USDT, which Circle has long been enthusiastic about. Under the new regulatory framework, they are also preparing to offer their own equivalent product, USDC.
