Chime Financial Inc. today disclosed the terms of its upcoming initial public offering.

The financial technology company, which has more than eight million users in the U.S., hopes to sell 25.9 million shares for $24 to $26 apiece. Another 6.1 million shares will be put on the market by several of Chime’s investors. The offering is set to raise $832 million on the high end of the targeted price range, which could still change before the listing.

Under the current IPO terms, Chime will start trading with an initial valuation of up to $11.2 billion. That’s less than half the $25 billion valuation it received after its most recent funding round in 2021. The company is backed by more than $2.6 billion from Sequoia Capital, SoftBank Group Corp. and other investors.

Chime provides checking accounts, savings accounts and a line of payment cards for U.S. consumers. The company disclosed in its IPO filing that it has more than 8.6 million active users. Chime holds customers’ funds in accounts operated by partner banks.

One of the platform’s main selling points is that it doesn’t charge account fees. Withdrawing funds is also free across more than 50,000 ATMs. Chime makes most of its revenue from interchange fees, which are commissions that merchants pay whenever a customer pays with a credit or debit card.

For companies, Chime offers a service called Chime Workplace. It helps human resources teams detect payroll-related technical issues. Another feature, Salt, allows companies to create employee rewards programs that offer monetary and non-monetary incentives for work milestones.

Chime’s revenue grew 31%, to $1.27 billion, last year while its net loss narrowed from $203 million to $25.3 million. The company further improved its financials in the first quarter, generating a $12.9 million profit on sales of $518.7 million. The latter figure represents a 32% year-over-year increase, a slight improvement over Chime’s 2024 growth rate.

One factor behind the company’s improving financial performance is a custom software platform called ChimeCore that it rolled out last year. The system processes a portion of user transactions and manages certain bookkeeping tasks. According to the company’s IPO filing, ChimeCore enabled it to reduce software maintenance costs and become less dependent on third-party technology providers.

Chime plans to make new investments in ChimeCore after going public. Since late 2024, the platform processes all of the credit card transactions made by the company’s users. Certain other transactions are still processed by a third-party payment processing provider. In February, Chime modified the terms of its partnership with the provider in a way that will make it easier to end the agreement and switch transactions to ChimeCore.

Chime plans to list on the Nasdaq under the ticker symbol “CHYM.”

Photo: Chime