Stablecoin giant Circle raises IPO pricing to $31 per share, raising $1.1 billion
According to a filing submitted to the U.S. Securities and Exchange Commission on Wednesday, the base number of shares issued by stablecoin issuer Circle has increased to 34 million shares. The issue price will also be raised from the current $27 to $28 per share to $31 per share
The issuer of stablecoins, Circle, is expected to set the IPO stock price in the U.S. at $31, raising $1.1 billion.
On June 4th local time, according to media reports, based on documents submitted to the U.S. Securities and Exchange Commission on Wednesday, this USDC stablecoin issuer received 25 times oversubscription, ultimately increasing the number of shares issued from 32 million to 34 million. The expected price per share is $31, which is not only higher than the anticipated range of $27-28 but also a significant leap from the initial range of $24-26.
A managing director of trading at a Wall Street firm told Barron's that the subscription volume for this issuance was significantly oversubscribed, indicating that demand for the stock exceeds the number of existing shares.
At this price, Circle's market capitalization will reach $6.9 billion. If employee stock options, restricted stock units, and warrants are included, the company's fully diluted valuation is approximately $8.1 billion.
Reports indicate that this issuance is led by JP Morgan, Citigroup, and Goldman Sachs as underwriters. In addition to ARK Investment Management expressing interest in subscribing for up to $150 million worth of shares, BlackRock also plans to acquire about 10% of the IPO shares. Notably, BlackRock manages a government money market fund on behalf of Circle, which holds 90% of the reserve assets in USDC stablecoins, with a balance of $53.3 billion as of May 29th.
Regulatory Dividend Window for the Stablecoin Market
The timing of Circle's listing is intriguing.
The U.S. Congress is advancing stablecoin regulatory legislation, which may pass as early as August, granting greater compliance recognition to stablecoins. Meanwhile, media reports indicate that some of Wall Street's largest banks are jointly exploring the possibility of issuing their own stablecoins.
Circle will begin trading on the New York Stock Exchange under the ticker CRCL on Thursday, becoming one of the most representative pure cryptocurrency listed companies in the U.S.
Unlike eToro, Robinhood, or Block, Circle's entire business revolves around stablecoins—cryptocurrencies backed by assets such as the U.S. dollar and U.S. Treasury bonds.
Circle's USDC holds approximately 27% market share in the stablecoin market, ranking second, only behind Tether USDT, which holds 67% of the market.
According to CoinMarketCap data, as of May 29th, the circulating supply of USDC is approximately $61 billion.
The company, led by CEO Jeremy Allaire, is projected to have a net income of $156 million and revenue of $1.68 billion in 2024, showing fluctuations compared to a net income of $268 million and revenue of $1.45 billion in 2023
