Chime IPO: Should You Buy CHYM Stock?
The Chime IPO is one of the biggest new issues of the year, with the mobile banking platform soaring in its June 12 market debut.


The market for initial public offerings (IPOs) looked as if it was finally gaining momentum in late March, but things quickly cooled as President Donald Trump's shifting tariff policies sparked uncertainty across Wall Street.
According to Renaissance Capital, there have been 88 IPOs priced so far this year through June 12, up 40% from the year prior.
However, the total proceeds raised from these offerings are $14.4 billion, down nearly 7% year over year.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But a blowout offering from stablecoin issuer Circle Internet Group (CRCL) and an impressive market debut from Chime Financial (CHYM) suggests the temporary freeze in public offerings is thawing.
Chime, which filed its IPO paperwork in mid-May, began trading on June 12 on the Nasdaq Composite, and market participants were hot to get a piece of the pie.
Last night, the fintech priced its offering at $27 per share, above the high end of its initial range of $24 to $26 per share, raising $865 million for the fintech and making it one of the biggest IPOs of the year.
The stock opened today at $43 and hit an intraday high of $44.94 before settling at $37.11. It's market capitalization now stands at $12.3 billion.
What is Chime?
Chime, which calls itself "a technology company, not a bank," was founded in 2012.
The company was created "to disrupt the traditional banking industry," which "was too expensive" and "failed to serve younger and lower-income people," writes Kiplinger contributor Tom Taulli in his feature on the hottest upcoming IPOs.
The goal of the mobile banking app "was to reduce and even eliminate fees for things such as minimum balances and overdrafts," Taulli says, and offer "competitive interest rates on deposit balances as well as credit cards."
Its target audience is "everyday Americans" who earn up to $100,000 annually, and the average age of its customers is 36.
How much is Chime worth?
The formula has paid off for Chime. According to its mid-May prospectus, the company had 8.6 million members as of March 31 and has seen 82% active member growth since the first quarter (Q1) of 2022.
The company also experienced year-over-year revenue growth of 32% in the first quarter and averaged $251 in revenue per active member. Its gross margin was 88%, unchanged from Q1 2024.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) — a key earnings metric — climbed 62% to $25.1 million.
Should you buy the Chime IPO?
"An initial public offering enables a private company to 'go public,' or start trading in public markets, by issuing its own shares on a stock exchange for the first time," Taulli writes in his article, "What Is an Initial Public Offering (IPO)?".
"In this way, any investor can buy shares and the company can raise capital to grow," he adds.
But IPOs can be volatile — especially for retail investors. While IPO stocks tend to have strong first-day showings, returns for the first year are generally weak, says the team of analysts at Trivariate Research, a market research firm based in New York.
As for retail investors, whether you buy the Chime IPO boils down to your own personal investing goals and risk tolerance.
If you decide to buy CHYM stock when it first begins trading, do so in a small amount that you can afford to lose.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
How to Invest as the AI Industry Grows Up
Here’s where to find the winners as artificial intelligence transitions from an emerging technology to an adolescent one.
-
I’m 62 and worried about Social Security’s future. Should I take it early?
A Social Security shortfall may be coming soon. We ask financial experts for guidance.
-
How to Invest as the AI Industry Grows Up
Here’s where to find the winners as artificial intelligence transitions from an emerging technology to an adolescent one.
-
How Much Income Can You Get From an Annuity? An Annuities Expert Gets Specific
Here's a detailed look at income annuities and the factors that determine your payout now and in the future.
-
Your Paycheck Stops in Retirement, But Your Life Doesn't: An Expert Guide to Planning for a Confident Future
Social Security will replace only about 40% of your salary, on average. A solid financial plan will help you plug the gap so you can rest easy in retirement.
-
Are You Jeopardizing Your Future to Help Your Adult Kids? An Expert Guide for How to Not Do That
If your adult child needs financial help, of course you want to provide it, but crafting a plan that also protects your financial and emotional well-being is vital.
-
Stock Market Today: Stocks Slip Ahead of Big Earnings, Inflation Week
Perhaps uncertainty about tariffs, inflation, interest rates and economic growth can only be answered with earnings.
-
I'm a Financial Planner: Here Are Some Long-Term Care Insurance Tips for Every Age
Strategies include adding riders to life insurance for younger individuals and considering hybrid or traditional long-term care policies for those in their mid-50s and 60s.
-
Engineering Reliable Retirement Income in 2025: An Expert Guide
For dependable income, consider using a bucket strategy and annuities in tandem to promote structure, flexibility and peace of mind.
-
Crazy Markets Shouldn't Derail Your Retirement if You Follow This Financial Pro's Plan
Being nervous about retiring in a volatile market is a red flag that you're relying too heavily on your investment portfolio, rather than a comprehensive plan.