Circle increased its offering from 24 million to 32 million shares, raising the price range to $27–$28, with total proceeds potentially reaching $896 million.
Major investors like ARK Invest and BlackRock are backing the IPO, with ARK committing up to $150 million and BlackRock acquiring around 10% of shares.
At the top range, Circle's valuation could hit $6.2 billion ($7.2 billion fully diluted), marking one of the largest IPOs in the digital asset space this year.
Circle Internet Group Inc. is expected to price its initial public offering (IPO) above its previously marketed range, as demand significantly outweighs supply. According to a Bloomberg report, the offering attracted orders that exceeded 25 times the number of shares available. This interest signals strong investor appetite ahead of the company’s debut on the New York Stock Exchange under the ticker ‘CRCL’.
IPO Deal Upsized Amid High Demand
Initially, Circle and its selling shareholders planned to offer 24 million shares at a price range of $24 to $26. However, the deal has been upsized to 32 million shares, with the new range marked between $27 and $28 per share. Based on the higher price range, the IPO could raise $896 million in proceeds.
That figure includes contributions from both Circle and participating selling shareholders. The IPO is scheduled to be priced on Wednesday evening, New York time, with final pricing still under deliberation. Sources indicated that the final pricing may still fall within the marketed range.
At the top of the updated price range, Circle would reach a market capitalization of nearly $6.2 billion. Its fully diluted valuation, accounting for stock options, restricted shares, and warrants could rise to about $7.2 billion. Share allocations will reportedly favor investors with long-term strategies. This approach may reflect an effort to maintain post-listing stability and reduce immediate sell-offs after listing.
Institutional Backing From ARK and BlackRock
The growth in this deal has been largely pushed by investment from financial institutions. According to Cathie Wood, ARK Investment Management plans to invest up to $150 million in shares. Similarly, it has been reported that around 10% of the available IPO shares will be purchased by BlackRock Inc.
JPMorgan Chase & Co., Citigroup Inc. and Goldman Sachs Group Inc. are leading the underwriting for the transaction. Circle’s activities in the stablecoin space are based on the USDC token. At the end of March, USDC accounted for almost 29% of the stablecoin market share.
At the same time, the U.S. Congress is reviewing bills that would control the issuance of stablecoins. Changes in laws and regulations may change how markets operate and make things clearer for companies that wish to raise funds. Meanwhile, major financial institutions are also exploring potential stablecoin offerings, according to earlier reports. Circle’s offering represents one of the largest IPOs within the digital asset industry this year, and its progress will be closely watched.
