Circle Soars 168% In First Day Of Trading On NYSE Following Strong IPO

Circle Internet Group, the issuer of the second-largest stablecoin, USDC, made a remarkable debut on the New York Stock Exchange (NYSE) on Thursday, with its shares surging 168% to reach a peak of $103.75. The company's stock opened at $69, well above its pricing of $31, and its IPO was priced late Wednesday, exceeding the anticipated range of $27 to $28. The IPO valued the company at approximately $6.8 billion before trading commenced. By the end of the trading session, Circle's trading volume reached about 46 million shares, far surpassing the number of freely floating shares available. CEO Jeremy Allaire emphasized the importance of building relationships with governments and policymakers, stating that the company's commitment to compliance and transparency has contributed to its success in a challenging regulatory environment. The strong debut of Circle's IPO could signal a shift in how institutional investors approach upcoming listings, potentially leading to higher initial public offering prices for future offerings. Circle's market capitalization, excluding employee options, stood at an impressive $16.7 billion by the close of trading, with the company successfully raising approximately $1.1 billion through the offering. The company's largest outside shareholders include General Catalyst and IDG Capital, holding approximately 8.9% and 8.8% of all stock, respectively. Circle's journey to this point has been marked by challenges, including its previous attempt to go public via a merger with a special purpose acquisition company (SPAC), which collapsed in late 2022 due to regulatory hurdles.