Circle – the second-largest issuer of the USDC stablecoin in the world – has just submitted new documents to the SEC, revealing plans to raise the price and number of shares in the upcoming IPO, aiming to capitalize on the strong wave of interest from Wall Street investors.
Specifically, Circle will sell 32 million Class A common shares at a price of $27–28 per share, significantly up from last week's plan of 24 million shares at a price of $24–26. If the IPO is successful at the maximum price, the company will raise up to $896 million, reaching a fully diluted valuation of $7.2 billion – much higher than the initially projected $6.7 billion.
Notably, just a few weeks ago, Ripple expressed interest in acquiring #Circle for $4–5 billion, but was rejected due to "undervaluation."
In the new #IPO plan, Circle will directly issue 12.8 million shares, while existing shareholders (including General Catalyst, Breyer Capital, and IDG Group) will sell the remaining 19.2 million shares – the proceeds from this group will not flow into the company. Wall Street giants like J.P. Morgan, Citigroup, and Goldman Sachs will take on the role of underwriters for the offering.
Circle will list shares on #NYSE with the stock code CRCL later this week. Adjustments to the price and number of shares just before the IPO are often a clear sign that market demand is exceeding initial expectations.
Currently, Circle is a direct competitor to Tether – the leading company in the stablecoin market. While Tether is still cautious about issuing USDT in the US due to concerns about the regulatory framework, Circle has continuously shown its willingness to comply and is ready to issue $USDC within the framework of US law if approved.
Contact with crypto: If the IPO is successful, this will be a significant milestone for the stablecoin industry – which plays a central role in DeFi and trading on Binance. Circle's expansion of legal operations in the US could also open up new growth opportunities for USDC.
Risk warning: Investing in cryptocurrencies and stocks related to this sector always carries high risks. Please consider carefully and only invest with capital you can afford to lose.