(Reuters) -Chime is set to debut on the Nasdaq later on Thursday after raising $864 million in its initial public offering, with investors waiting to see whether the digital bank will maintain the recent streak of explosive first-day gains for new listings.

The hotly anticipated debut is being viewed as a bellwether for other IPO candidates in the fintech industry, where valuations have cooled from pandemic-era highs.

"A strong debut could trigger a domino effect, prompting other high-growth firms to accelerate their IPO timelines and position themselves for a window that's starting to reopen," said Kat Liu, vice president at IPOX.

"If well-received, Chime could help reopen the IPO window for other long-delayed unicorns."

Chime and some of its investors sold 32 million shares priced at $27 each. It had earlier marketed a $24 to $26 price range.

The IPO gave the San Francisco-based company a fully diluted valuation of $11.6 billion. It was last valued at $25 billion after a funding round in August 2021.

Chime's major backers include Yuri Milner's DST Global and investment firms General Atlantic and ICONIQ. It has raised $2.65 billion from private investors since its inception, according to PitchBook data.

Digital banks such as Chime have grown rapidly in recent years by offering low-cost, mobile-first financial services that appeal to younger users and underserved consumers.

With features such as no-fee accounts, early access to direct deposits and user-friendly apps, they have positioned themselves as accessible alternatives to traditional banks.

The fintech earns revenue primarily from interchange fees collected when users swipe their debit cards.

Morgan Stanley, Goldman Sachs and J.P. Morgan were the lead underwriters for Chime's IPO.

MARKET THAW DRAWS IPO HOPEFULS

Soaring interest rates and recession fears since the 2021 IPO boom have hit valuations and investor demand for new issues, forcing many private companies to delay their IPO plans. But some high-growth firms are cautiously testing the waters again.

Circle, the stablecoin issuer that went public last week, has seen its stock gain fourfold from its IPO price. Space tech firm Voyager's shares more than doubled on their debut on Wednesday.

However, some analysts cautioned against excessive optimism, warning that uncertainty around trade negotiations by President Donald Trump's administration could weigh on the broader recovery.

"While this is clearly a strong IPO window now, there is no guarantee it will continue," said Samuel Kerr, head of equity capital markets at Mergermarket.

"Investors and issuers have made use of the tariff pause to do deals but there is still broad uncertainty."

Crypto exchange Gemini, buy-now-pay-later firm Klarna, AI chipmaker Cerebras and medical supplies company Medline are among the most closely watched names in the current IPO pipeline.

(Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Anil D'Silva)