Chime Soared Nearly 40% on IPO Day -- but It Could Still Be a Long-Term Home Run
It's fair to say that investor demand for long-awaited IPOs is back. Online banking company Chime (NASDAQ: CHYM) finally went public after years of stagnation in the fintech IPO pipeline, and to call it a successful public debut would be a bit of an understatement.Not only did Chime price its IPO at $27 per share, which was already higher than the expected range of $24 to $26, but the stock skyrocketed right out of the gate. Chime stock climbed to nearly $45 per share on its IPO day before retreating a bit, but at the closing bell, Chime was 37% higher than its initial share price.Even so, this values Chime at about $16 billion, which is significantly lower than the company's peak private valuation of $25 billion, which occurred in 2021. After such strong interest in the company's debut, is this fintech worth a closer look right now for long-term investors?Continue reading
It's fair to say that investor demand for long-awaited IPOs is back. Online banking company Chime (NASDAQ: CHYM) finally went public after years of stagnation in the fintech IPO pipeline, and to call it a successful public debut would be a bit of an understatement.
Not only did Chime price its IPO at $27 per share, which was already higher than the expected range of $24 to $26, but the stock skyrocketed right out of the gate. Chime stock climbed to nearly $45 per share on its IPO day before retreating a bit, but at the closing bell, Chime was 37% higher than its initial share price.
Even so, this values Chime at about $16 billion, which is significantly lower than the company's peak private valuation of $25 billion, which occurred in 2021. After such strong interest in the company's debut, is this fintech worth a closer look right now for long-term investors?
