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IPO values Chime at roughly $11.6 billion on fully diluted

basis

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Chime was valued at $25 billion during last major funding

round

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Chine generates bulk of its revenue from interchange fees

(Adds background)

By Echo Wang

June 11 (Reuters) -

Financial technology company Chime said on Wednesday it

raised $864 million in its initial public offering after pricing

shares at $27 each.

The company had marketed the offering between $24 and $26

per share.

The IPO values Chime at roughly $11.6 billion on a fully

diluted basis.

Chime's IPO marks one of the biggest by a U.S. financial

technology firm in recent years. It follows a period when

valuations reset from highs touched in the wake of the

coronavirus pandemic, which turbocharged investments into

fintechs and e-commerce companies.

Founded in 2012 by former Visa Inc executive Chris

Britt and Comcast Corp alumnus Ryan King, Chime offers its

services through partnerships with brick-and-mortar banks. Its

products include branded checking accounts with user-friendly

features such as fee-free overdrafts.

Chime, which was valued at $25 billion during its last

major funding round in 2021, counts the likes of Yuri Milner's

DST Global, private equity firm General Atlantic, and investment

firm ICONIQ among its investors.

Chime is set to begin trading on the Nasdaq Global

Select Market on Thursday under the symbol 'CHYM'.

The IPO comes on the heels of a strong market debut by

stablecoin issuer Circle earlier in June, helping inject fresh

momentum into a U.S. IPO market that had been subdued amid

uncertainty triggered by the tariff policies of the Trump

administration.

Chime had been expected to offer shares earlier this

year before delaying its launch after Trump's "Liberation Day"

tariffs announcement roiled financial markets.

The recent pickup in listings has encouraged more

companies to revive plans, with June shaping up as a key window

as firms look to capitalize on relatively stable market

conditions ahead of the traditional summer slowdown.

As of March 31, Chime had 8.6 million active members.

According to its IPO prospectus, the company earned average

revenue per active member of $251 in the first quarter. Members

averaged 54 transactions per month, 75% of which were purchase

transactions using Chime-branded cards.

The company generates the bulk of its revenue from

interchange fees - a share of transaction fees paid by merchants

to payment networks like Visa each time a customer uses a Chime

debit or credit card.

Chime's net loss narrowed to 39 cents per share for the

year ended December 31, down from $3.22 in 2023 and $8.12 in

2022.

Morgan Stanley ( MS ), Goldman Sachs ( GS ) and J.P.

Morgan Chase are the lead underwriters for the IPO

offering.