Chime Financial’s stock jumped 37% on its first day of trading yesterday, closing at $37.11 after being priced at $27. The strong debut gives the mobile banking company a market value of over $13 billion.
The company runs a popular banking app that doesn’t charge fees, doesn’t require minimum balances, and lets users get paid early. It became especially popular during the pandemic when people wanted fast access to stimulus money.
IPO market still recovering
For the past few years, initial public offerings (IPOs) have struggled as high interest rates made investors more cautious. Many companies that went public in 2020 and 2021 saw their stock prices fall.
Chime was once valued at $25 billion in 2021 but has seen that number drop, even with Thursday’s rise.
New optimism in sight
IPO activity slowed earlier this year when President Donald Trump’s new tariffs shook the markets. Chime, Klarna, and StubHub delayed their listings.
But recent strong debuts—like Circle tripling its IPO price and Voyager jumping over 80%—are boosting confidence. More companies may now be ready to go public.