Circle Internet Group officially files for initial public offering with 24 million shares, with ARK Investment committing to invest $150 million.
The cryptocurrency market is witnessing an important milestone as Circle Internet Group, the company behind the world's second-largest stablecoin USDC, officially files for IPO on the New York Stock Exchange. This move marks an important step in bringing large crypto companies to the traditional stock market.
Circle plans to offer 24 million Class A common shares, with 9.6 million shares directly issued by the company and 14.4 million shares sold by existing shareholders. The company also plans to grant underwriters the option to purchase up to 3.6 million additional shares within 30 days of the IPO.
The expected offering price ranges from $24-26 per share. At the highest price, Circle could raise nearly $250 million from new share issuance, while existing shareholders could receive around $375 million from share sales. The total transaction value could reach up to $625 million when considering both parts.
Notably, ARK Investment Management led by Cathie Wood is participating, with a commitment to purchase $150 million in shares during the IPO. This is a positive signal of large institutional investors' confidence in Circle's growth potential and the stablecoin market in general.
Long Journey to IPO
J.P. Morgan, Citigroup, and Goldman Sachs & Co. LLC are serving as joint lead active bookrunners for Circle's IPO, demonstrating support from top Wall Street investment banks. The company's shares will be traded under the ticker CRCL on NYSE.
Under CEO Jeremy Allaire's leadership, Circle has had a nearly 4-year IPO journey. In 2021, the company attempted to list through a SPAC merger, but the deal was unsuccessful due to unfavorable market conditions and changes in the legal environment.
In April this year, Circle filed an S-1 form with the SEC to prepare for listing, though there were later reports suggesting the company was considering delaying the IPO. Circle's final decision to proceed with the IPO indicates improved market conditions and confidence in the company's long-term prospects.
According to a Fortune report last week, Circle had also considered selling the entire company at a valuation of around $5 billion instead of pursuing the IPO path. Some parties were reportedly interested, including Coinbase and payment company Ripple, the issuer of RLUSD stablecoin.
