USDC issuer Circle moves forward with initial public offering on NYSE

Circle, the issuer of USDC, the second-largest stablecoin by market capitalization, has launched an initial public offering (IPO) of 24 million shares of its Class A common stock, the company said on May 27.

The firm has applied to list its Class A common stock on the New York Stock Exchange (NYSE) under the ticker symbol CRCL. As part of the offering, Circle is issuing 9.6 million shares of Class A common stock, the company said in a news release.

The remaining 14.4 million shares of Class A common stock will be offered by selling stockholders. Circle is also expected to grant the underwriters a 30-day option to buy up to an additional 3.6 million shares of Class A common stock to cover over-allotments.

The IPO involves participation from several major US investment banks, with JPMorgan, Citigroup and Goldman Sachs acting as joint lead active bookrunners, the announcement added.

An excerpt from the title page of Circle’s Form S-1 IPO filing. Source: SEC

The offering will also feature European banks, including Barclays, Deutsche Bank Securities and Societe Generale acting as bookrunners.

The IPO’s co-managers include BNY Capital Markets, Canaccord Genuity, Needham, Oppenheimer and Santander, while junior co-managers are AmeriVet Securities, Drexel Hamilton, Mischler Financial Group and Roberts and Ryan.

IPO price between $24 and $26 per share

Circle currently expects to offer IPO shares at a price ranging from $24 to $26 per share, potentially raising between $576 million and $624 million.

In its Form S-1 filing on Tuesday, Circle said it will not receive any proceeds from the sale of shares of Class A common stock by the selling stockholders.

“The offering is subject to market conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering,” Circle noted.

The company said the shares may not be sold prior to the time the registration statement becomes effective. Crypto-focused investors like Cathie Wood’s ARK Invest have indicated an interest in purchasing up to $150 million of IPO shares, Circle noted in the filing, adding:

“However, because indications of interest are not binding agreements or commitments to purchase, the underwriters could determine to sell more, fewer or no shares to any of these potential purchasers, and any of these potential purchasers could determine to purchase more, fewer or no shares in this offering.”Circle reportedly targets a $6.7 billion valuation

According to a report by Reuters, Circle targeted a valuation of up to $6.71 billion on a fully diluted basis in its IPO offering.

The firm previously attempted to go public through a blank-check deal with the special purpose acquisition company Concord in 2021. Initially targeting a preliminary valuation of $4.5 billion, the deal was amended to place Circle at a $9 billion valuation, with the firm eventually terminating the deal by late 2022.

Cointelegraph approached Circle for a comment regarding the company’s valuation in the IPO, but had not received a response at the time of publication.

Main competitor Tether “doesn’t need an IPO”

“For Circle, becoming a publicly traded corporation on the New York Stock Exchange is a continuation of our desire to operate with the greatest transparency and accountability possible,” Circle co-founder and CEO Jeremy Allaire wrote in a letter accompanying the Form S-1.

“Operating as a US-listed public company represents our continued dedication to transparency and accountability, as we will become subject to the reporting, corporate governance, and other requirements,” he added.

Founded in 2013, Circle is a major company in the crypto industry, known as the issuer of USDC (USDC), the second-largest stablecoin by market capitalization after Tether’s USDt (USDT).

The top three stablecoins by market capitalization. Source: CoinGecko

At the time of writing, USDC has a market cap of $61.5 billion, while its main competitor, USDT, has a $152.7 billion market cap, according to CoinGecko.

Though a significantly bigger player than Circle, El Salvador-based Tether is apparently not looking to launch an IPO.

“Tether doesn’t need to go public,” Tether CEO Paolo Ardoino said in an X post in April.

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