Circle Internet Group Inc., a prominent player in the stablecoin arena, successfully navigated its initial public offering (IPO), raising nearly $1.1 billion in an upsized deal that saw shares priced above the initially marketed range.
This strong market reception is being interpreted as a significant indicator of the increasing acceptance and perceived legitimacy of stablecoin issuers within the broader financial landscape.
The stablecoin firm, along with some of its existing shareholders including co-founder and Chief Executive Officer Jeremy Allaire, sold a total of 34 million shares on Wednesday at a price of $31 each, according to a statement confirming an earlier Bloomberg News report.
This pricing gives Circle a market valuation of approximately $6.9 billion based on the outstanding shares detailed in its regulatory filings.
When accounting for employee stock options, restricted share units, and warrants, the company’s fully diluted valuation reaches about $8.1 billion.
The offering’s success was underscored by significant investor interest.
The upsized deal reportedly fielded demand for more than 25 times the number of shares available by the time orders closed on Tuesday, according to people familiar with the matter.
This overwhelming demand prompted Circle to increase the size and price of its IPO earlier in the week.
On Monday, the target for the offering was raised to 32 million shares at a price range of $27 to $28 per share, a notable increase from the initial plan to sell 24 million shares within a $24 to $26 price range, as indicated in its earlier filings.
In the final tally, Circle itself sold 14.8 million shares in the IPO, while the selling shareholders divested the remaining 19.2 million shares.
Regulatory tailwinds and growing institutional interest
Circle’s successful public offering comes at a pivotal time for stablecoins – digital tokens typically pegged to a fiat currency like the US dollar.
Legislation currently before the US Congress aims to regulate these assets, a development that many believe will confer greater legitimacy upon them and potentially pave the way for broader adoption.
However, this evolving regulatory landscape may also attract new and formidable competitors.
The Wall Street Journal reported last…