Circle, a leading stablecoin issuer, is on track to surpass its initial public offering expectations due to overwhelming demand from investors. According to reports from Bloomberg, the company has received orders for more than 25 times the number of shares available, indicating strong interest from institutional investors.
The IPO will offer 32 million shares at a price range of $27 to $28, with the goal of raising up to $896 million. At the higher end of the range, Circle’s market capitalization would be approximately $6.2 billion, and its fully diluted valuation would be around $7.2 billion. This significant interest from investors has prompted the company to consider pricing the offering above the initially marketed range.
The stablecoin issuer is best known for USDC, the second-largest stablecoin in circulation, which accounted for approximately 29% of the stablecoin market as of March. With the growing popularity of digital dollar-pegged tokens, Circle’s IPO comes at a crucial time as US lawmakers are discussing stablecoin legislation that could provide regulatory clarity and mainstream acceptance for these assets.
Notable financial firms have expressed interest in Circle’s offering, with Ark Invest planning to purchase up to $150 million worth of shares and BlackRock expected to acquire around 10% of the total offered shares. Leading underwriters for the IPO include JPMorgan, Citigroup, and Goldman Sachs, with Circle set to begin trading on the New York Stock Exchange under the ticker symbol “CRCL.”
The IPO announcement coincides with traditional financial institutions exploring their own stablecoin initiatives. Wall Street banks like JPMorgan are reportedly exploring joint issuance efforts, indicating a growing interest in digital assets among established financial players.
Overall, Circle’s IPO reflects the increasing demand for digital assets and stablecoins in particular. With strong investor interest and the potential for regulatory clarity on the horizon, the company is well-positioned to capitalize on the growing interest in the digital asset space.