According to CoinDesk, the price at which Circle Internet Financial’s private shares are currently trading on the secondary market indicates that the stablecoin issuer is valued at between $5 billion and $5.25 billion ahead of its planned initial public offering (IPO). .

According to three sources familiar with the situation, Circle, the issuer of USDC, the second largest stablecoin by market value, allows its shares to be traded on a "limited basis" in the secondary market before the IPO, but these transactions need to be done on a case-by-case basis based on specific circumstances. case review.

Those selling shares are typically early investors or Circle employees who are reducing their holdings primarily out of liquidity needs, people familiar with the matter said. However, people familiar with the matter stressed that the company would not allow shareholders to trade at a valuation below $5 billion.

The Coinbase-backed company attempted to go public in 2022 through a merger with special purpose acquisition company (SPAC) Concord Acquisition Corp, which at one point was valued at about $9 billion. However, the listing plan was ultimately stalled due to the failure of the U.S. Securities and Exchange Commission (SEC) to approve the merger in time, 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 in January this year and submitted a confidential S-1 draft document to the U.S. Securities and Exchange Commission. The number of shares planned to be issued, the price range and the exact timing have not yet been determined. Circle appears to be planning to move its domicile from Ireland to the United States as its new legal domicile ahead of its IPO, according to a Bloomberg report in May.

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