USDC Issuer, Circle, Files for IPO on NYSE

Circle Internet Group, the company responsible for the USDC stablecoin, announced on May 27 that it has submitted paperwork for an initial public offering on the New York Stock Exchange.

Circle is making 24 million Class A shares available, offering 9.6 million shares directly, while stakeholders are offloading 14.4 million shares.

The firm intends to give underwriters a 30-day option to buy an additional 3.6 million shares.

The expected pricing for each share in the IPO falls between $24 and $26.

If the IPO prices at the upper end, Circle could generate close to $250 million, while selling shareholders might receive around $375 million from their shares.

According to a filing, USDC issuer Circle noted that Cathie Wood’s ARK plans to purchase $150 million in shares from the IPO.

“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 decide to purchase more, fewer or no shares in this offering.”

J.P. Morgan, Citigroup, and Goldman Sachs & Co. LLC are serving as the primary joint bookrunners for the offering. Circle will list its stock under the ticker symbol ‘CRCL.’

For nearly four years, Jeremy Allaire and his firm have been working toward an IPO.

Circle’s 2021 plan to go public using a special purpose acquisition company (SPAC) fell apart before the company completed it.

In April, Circle submitted an S-1 registration statement to the Securities and Exchange Commission (SEC) to pursue a public listing.

Later reports revealed that Circle planned to delay its IPO.

Fortune revealed last week that Circle considered a $5 billion sale as an alternative to pursuing an IPO.

Reports also mentioned that the publicly traded crypto exchange Coinbase (COIN) and payments company Ripple, known for its RLUSD stablecoin, might buy Circle.

Founded in 2013, Circle holds a major position in the crypto industry as the creator of USDC, the stablecoin that ranks second in market capitalization after Tether’s USDT.

In late April, reports suggested that Circle was pursuing a banking license in the United States. However, Dante Disparte, Circle’s Chief Strategy and Global Officer, refuted this claim. 

He emphasized the firm’s commitment to meeting expected U.S. requirements for payment stablecoins, which could involve securing a trust charter or a similar non-bank regulatory license.

According to CoinGecko, USDC currently has a market cap of $61.5 billion, while USDT leads with $152.7 billion.