- Circle IPO priced at $31 per share, raising $1.1 billion amid investor demand more than 25 times the shares offered.
- Circle reached a $6.9 billion market valuation and $8.1 billion fully diluted valuation through the upsized initial public offering.
- BlackRock and ARK Investment backed the IPO, signaling institutional confidence in Circle’s stablecoin-based financial model and long-term positioning.
Circle Internet Group, the company behind the USDC stablecoin, has priced its upsized initial public offering (IPO) at $31 per share, raising close to $1.1 billion. The stablecoin issuer’s IPO attracted strong demand, with investors ordering over 25 times the number of available shares.
IPO Priced Above Range Amid Surging Demand
According to Bloomberg, Circle priced its IPO above the previously marketed range of $27 to $28 per share. The final pricing implies a market value of approximately $6.9 billion and a fully diluted valuation of about $8.1 billion.
Circle and existing shareholders are offering 32 million shares, up from an initial 24 million, with early filings suggesting a lower price band of $24 to $26. A source indicated that allocations are favoring long-term investors. Deliberations on the pricing were still active as of the time of reporting, with the possibility of settling within the earlier range.
The strong interest is partly attributed to increased investor confidence in stablecoin projects. The offering is led by JPMorgan Chase, Citigroup, and Goldman Sachs, with Circle expected to list on the New York Stock Exchange under the ticker symbol “CRCL”.
Institutional Interest and Strategic Share Distribution
ARK Investment Management, run by Cathie Wood, has expressed interest in buying up to $150 million Circle shares. BlackRock is also expected to buy approximately 10% of the IPO shares, according to people familiar with the situation.
The IPO attracted high demand due to Circle’s positioning in the stablecoin market, where its USD Coin (USDC) holds a 29% share as of March. Bloomberg reports that based on top-end pricing, Circle’s valuation excluding dilution stands at $6.2 billion, while including employee options and warrants pushes it to $7.2 billion.
Sources suggest that share allocations will be weighted towards investors with a track record of long-term holding strategies. Circle has not made any public comments on the offering.
Regulatory Environment and Competitive Landscape
The IPO comes at a time when stablecoins are under consideration for regulatory legislation in the U.S. Congress, potentially increasing their perceived legitimacy.
Meanwhile, Wall Street’s major banks are reportedly exploring stablecoin issuance, potentially adding competition to Circle’s market share. Circle’s strong investor interest suggests a robust market appetite for regulated digital finance instruments.
The stablecoin issuer’s valuation and strong demand may reflect wider expectations around regulation and growth in the digital asset space.
