Unlock the Editor’s Digest for free
Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
Mobile banking group Chime has filed for a US initial public offering in an early sign of the optimism returning to financial markets as Donald Trump softens his stance on tariffs.
Chime on Tuesday said it planned to list its shares on the Nasdaq in New York, in an offering that will test investors’ appetite for tech listings at a time of heightened uncertainty for global trade.
American tech stocks were among the hardest hit by the US president’s sweeping “liberation day” tariff announcements in early April but have led markets higher over the past month as he has watered down some of his initial levy plans and agreed preliminary deals with the UK and China.
Bursts of market volatility around Trump’s tariff announcements led bankers to postpone several eagerly anticipated tech IPOs earlier this year, while other large listings received a lukewarm reception.
Chime’s decision to brave the market turbulence could pave the way for other large listings. Retail trading platform eToro launched its IPO roadshow last week and is aiming to raise about $500mn at a roughly $4bn valuation.
Chime’s revenue rose 30 per cent year on year to $1.67bn in 2024, according to Tuesday’s filing with the Securities and Exchange Commission. Its net loss fell to $25mn from $203mn over the same period.
Chime originally planned to go public in 2023 and had previously discussed with investors a valuation of between $15bn and $20bn, the Financial Times has reported.
A similar valuation this year would rank the San Francisco-based company alongside Klarna, which filed for a New York IPO in March in a deal that could value the Swedish buy now, pay later group at $15bn.
Morgan Stanley, Goldman Sachs and JPMorgan will act as lead underwriters on Chime’s offering.
The broader US IPO market has been relatively subdued since Trump began his second term, disappointing hopes of a revival for larger deals under a Republican administration following a three-year dry spell induced by high interest rates.
US stocks have rebounded over the past month, however, with the S&P 500 on Tuesday wiping out its losses this year after better than expected inflation figures added fuel to a fresh rally triggered by Trump’s deal with China to cut tariffs.
