Circle, the company behind the USDC Stablecoin, has revised its IPO application to display a stronger than expected investor question, according to a 2 June submit With the US Securities and Exchange Commission (SEC).
The updated archiving is now showing Circle to spend 32 million class A shares shares, an increase in the previously announced 24 million. It also increased its proposed price range to between $ 27 and $ 28 per share, compared to the initial range from $ 24 to $ 26.
If the final prices land at the top, Circle could pick up up to $ 896 million, which is around 44% more than the original estimate of $ 624 million.
This adjustment would also push the appreciation of the company to around $ 7.2 billion on a fully diluted basis, against the earlier goal of $ 6 billion.
The offer marks an important milestone for the company, because it seems to strengthen its status in the digital financial landscape. USDC, Circle’s flagship Stablecoin, is the second largest dollar tokens worldwide, with a market capitalization of more than $ 61 billion.
Why Circle raised its IPO
The decision of Circle to expand the IPO comes in the midst of rising institutional interest in stablecoins and the growing clarity of the regulations.
Market analysts say that the Stablecoin sector, considered for a long time as a niche industry, is introducing a new phase of mainstream relevance due to increasing acceptance and trust outside the crypto-native crowd.
As a result, older financial institutions such as JPMorgan, Citigroup and others are warming up to Stablecoins by actively exploring a jointly issued dollar-stundled.
Another substantial proof of institutional interest in Stablecoins is that BlackRock, the world’s largest asset manager, is one of the largest potential buyers of the shares in Circle.
Sources that are familiar with the case say that BlackRock is planning to buy around 10% of the IPO shares. If that plan occurs, it would further deepen the relationship between the two companies.
BlackRock is already playing a key role in managing the USDC reserves from Circle via the Circle Reserve Fund, which contains approximately 90% of the support assets of the Stablecoin.
However, an interest in the circle would expose the asset manager to the wider Stablecoin market and expand his interest in the crypto scene outside of ETFs.