This crypto company went public and shares surged 235% instantly
What's the story
Circle Internet Group, a prominent stablecoin issuer, has witnessed an extraordinary surge in its share value.
The company's shares have skyrocketed by as much as 235% after its initial public offering (IPO).
Circle's shares hit a high of $103.75 on Thursday, compared to the $31 IPO price.
The move comes as part of Circle and some of its shareholders raising nearly $1.1 billion through the IPO priced at $31 per share.
Shareholder participation
One of the biggest IPOs of the year
The offering of 34 million shares by Circle and its backers, including co-founder and CEO Jeremy Allaire, was upsized from an initial 32 million.
The shares were marketed at a price range of $27 to $28 each.
This is one of the biggest IPOs of the year and among the largest crypto listings since Coinbase Global's debut in 2021.
Market response
Strong demand for Circle's IPO
Samuel Kerr, head of equity capital markets at Mergermarket, said the strong demand for Circle's IPO is a positive sign for both the IPO market and cryptocurrency-related listings.
He noted that there is still a divide in the market, with institutional demand focused on stablecoins and other less-volatile crypto assets like infrastructure or exchanges.
In contrast, more speculative single-cryptocurrency investments not tied to benchmarks like the US dollar attract less interest.
Company profile
What is Circle?
Founded in 2013, Circle is the issuer of USDC, the second-largest stablecoin after Tether with a market cap of over $61 billion.
Stablecoins are cryptocurrencies designed to maintain a stable value by pegging them to traditional currencies such as the US dollar.
Apart from USDC, Circle also issues euro-denominated stablecoin EURC.