- More than 32 million shares of Circle were sold during its IPO because of strong interest from large, established financial institutions.
- Because demand for the IPO is 25 times greater than the number of shares offered, the market price is likely to go over the range of $27–$28 suggested in the initial offering.
- The development of rules for stablecoins in the U.S. is making investors feel safer and advancements on the GENIUS Act are also helping achieve their goals.
More than 32 million shares of Circle were sold during its IPO because of strong interest from large, established financial institutions. According to a Bloomberg report, as the demand for the IPO is 25 times greater than the number of shares offered, the market price is likely to go over the range of $27–$28 suggested in the initial offering.
Close to 800 times the expected number of shares were applied for, and Circle Internet Financial may open its initial public offering above the offered range because of this strong interest from investors. Many traditional financial institutions wanted to participate in the offering, which suggests the deal was in high demand.
Because of investor interest, Circle set the price range for their shares from $27 to $28, after it had been $24–$26. Impala also chose to offer 32 million Class A common shares which is higher than the previously planned amount of 24 million. Should pricing occur at the maximum, the company could get an estimated $896 million, which would give it a valuation of $7.2 billion.
Strategic Allocation is of Interest to Important Institutions
Signals point to more attention on long-term investors which is an effort to help the company perform well after being listed. Reports mention that Cathie Wood’s Ark Invest and BlackRock are looking to buy the company. ARK Invest is looking to get as much as $150 million in shares and BlackRock could purchase as much as 10 percent of the shares offered during the IPO.
According to people familiar with the process, the pricing for the IPO could be set by the evening of June 4 in New York. While it’s still being debated, it looks like demand might make the final price higher than was planned during marketing.
The IPO is happening as the regulatory rules for stablecoins become clearer. The U.S. Congress is advancing ‘GENIUS Act’, a piece of legislation planned to put a federal outline in place for stablecoins. This move boosts the role of important digital finance firms like Circle.
The rankings of stablecoins by market cap put Circle’s USDC in second place, just beneath Tether’s USDT in first. According to CoinMarketCap, USD Coin (USDC) is valued at $61.4 billion as of now. Many people will pay more attention to how stablecoins fit into the world of digital payments because of the IPO.
