The Circle IPO sees huge demand, with shares likely to trade above the $27-$28 range, targeting a $7.2B valuation for the USDC issuer.
According to reports, the Circle IPO was 25 times oversubscribed, which has piqued the interest of investors in the traditional finance (TradFi) sector. As a result, there are indications that the IPO may exceed the marketed range, surpassing the USDC issuer’s $7.2 billion valuation.
Circle IPO expected to trade higher than the market price
According to a Bloomberg report, the USDC issuer received orders for 25 times the number of shares it was offering in its upsized deal, which suggests that the initial public offering is likely to price above the marketed range.
To raise $896 million at a valuation of $7.2 billion, Circle raised the pricing of its IPO from $24 to $26 per share to $27 to $28 per share. The company also increased the number of Class A common stock shares it offered from 24 million to 32 million.
According to the Bloomberg report, the Circle IPO could be priced on the evening of June 4, New York time. Investors with a long-term investment strategy are purportedly the primary focus of the share allocation. In the interim, negotiations are ongoing, and the USDC issuer may continue to price the IPO within the range.
Ark Invest, which Cathie Wood owns, has expressed its intention to acquire up to $150 million in Class A common stock. According to reports, BlackRock is also contemplating the acquisition of up to 10% of the IPO shares.
Arthur Hayes, the proprietor of BitMEX, addressed the Circle IPO’s most recent developments in an X post. He stated,
As much as I hate on Circle, it’s great for all our bags if TradFi is buying what we are selling.
Currently, the US Congress is establishing a regulatory framework for stablecoins through the “GENIUS Act,” and the IPO is taking place when demand for stablecoins is on the rise. The stablecoin bill’s amendment process has advanced, as CoinGape reported, with more than 60 proposals. The Senate could vote on the measure as early as this week.
Currently, Circle’s USDC is the second-largest stablecoin by market capitalization, trailing only Tether’s USDT. According to CoinMarketCap data, USDC has a market capitalization of $61.4 billion.
