What is the value of USDC stablecoin issuer Circle? Insiders: Pre IPO valuation of approximately $5
According to CoinDesk, the current trading price of Circle Internet Financial's private stock on the secondary market indicates that the stablecoin issuer is valued between $5 billion and $5.25 billion prior to its planned initial public offering (IPO).
According to three sources familiar with the situation, Circle, as the issuer of the second largest stablecoin USDC by market value, allows its shares to be traded "to a limited extent" on the secondary market before the IPO, but these transactions need to be reviewed on a case by case basis.
Insiders said that the sellers of shares are usually early investors or Circle employees, who mainly reduce their holdings for liquidity needs. However, insiders emphasized that the company does not allow shareholders to trade at a valuation below $5 billion.
This Coinbase backed company attempted to go public in 2022 through a merger with Concord Acquisition Corp, a special purpose acquisition company (SPAC), with a valuation of approximately $9 billion at the time. However, the listing plan was ultimately halted due to issues such as the failure of the US Securities and Exchange Commission (SEC) to approve the merger in a timely manner, the impact of the cryptocurrency bear market, and the bankruptcy of FTX. The two companies announced in December 2022 that they had jointly terminated the proposed merger.
Subsequently, Circle first revealed its plans for an IPO listing in January of this year and submitted a confidential S-1 draft document to the US Securities and Exchange Commission. The number of shares to be issued, price range, and exact timing have not yet been determined. According to Bloomberg's May report, Circle appears to be planning to relocate its registered address from Ireland to the United States as its new legal registered address prior to its IPO.
