Learn how to invest in Chime stock when the IPO arrives. Increase your chances of receiving an allocation by opening an account with a commission-free broker that offers IPO investing to eligible customers.
Latest Chime Stock IPO News
09/18/2020: Chime is now worth $14.5 billion, surging past Robinhood as the most valuable U.S. consumer fintech
12/05/2019: Digital bank Chime quadruples valuation in less than a year to $5.8 billion as it takes on megabanks
What is Chime?
Chime is an app-based online bank that has redesigned the way millennials manage their money. As of 2020, the company has more than 8 million banking customers.
Customers conduct banking on the app or desktop platforms, and each receives a debit card for spending. Chime makes money on interchange fees each time a customer swipes their debit card.
With no physical bank locations, the company can scale at a lower cost than traditional banks. Its simple-to-use mobile interface appeals to a generation with limited banking needs who are dissatisfied with legacy banking bloat and fees.
Along with Robinhood and Stripe, Chime is one of several fintech apps and upcoming IPOs riding the wave of mobile technology efficiencies.
Is Chime Stock Publicly Traded?
No, Chime Financial, Inc. is privately owned. The shareholders include founders, early investors (venture capital firms), and employees.
You can find a current list of Chime investors at Crunchbase.
Chime has raised at least $1.5 billion in private financing since its founding. Prominent venture capital investors include Coatue Management, DST Global, General Atlantic, and Menlo Ventures.
When is the Chime IPO Date?
The Chime IPO date is currently unknown. There is speculation that the Chime IPO date will be sometime during 2021.
In September 2020, CNBC reported that the company is now valued at $14.5 billion after its latest fundraising effort, making it one of the most valuable companies in fintech.
It will become “IPO ready” in 2021, according to Founder and CEO Chris Britt.
We won’t get a better sense of when the Chime IPO will be until one of two things happens:
- The Chime IPO date range leaks to the financial press
- The SEC releases a publicly-available Chime S-1 filing
We may get clues, such as when Chime selects a lead underwriter for the IPO or announcing a confidential filing. Those types of announcements would indicate the IPO is within six to twelve months.
Even when the company and SEC publicly release the S-1 filing, we still won’t know a firm date. However, the IPO date typically occurs a month or so after the S-1 is released to the public.
Bookmark this page for the latest Chime IPO news.
What is the Chime Stock Price?
Since Chime is not publicly traded on a stock exchange, there is no Chime stock price yet.
An estimated price range for the IPO won’t be publicized until after the S-1 filing is made with the Securities and Exchange Commission (SEC).
What is the Chime Stock Symbol? Chime Ticker?
Chime has not yet submitted public filings to the SEC. Therefore, it is not yet known what the Chime stock symbol will be. We can only speculate.
A shorter symbol may be more likely in this case, as these two suggestions appear to be available on U.S. exchanges:
Two obvious suggestions appear to be already taken:
- CHIM – Global X MSCI China Materials ETF
- CHME – China Medicine Corporation (penny stock that trades OTC, may be available)
Will Chime Stock be a Motley Fool Stock Advisor Recommendation?
We won’t know until after the IPO if Chime will be a Motley Fool Stock Advisor recommendation. However, Chime fits the mold of high-growth, disruptive business models that the Fool typically recommends.
When the Motley Fool recommends a company, there is usually an immediate spike in the price. Fool newsletter subscribers are notoriously long-term minded and rarely sell, meaning the stock price will continue to rise.
Chime may also receive a recommendation by the Motley Fool Rule Breakers newsletter or other premium services. Both services have handily beaten the broader market since the early 2000s.
Read this Motley Fool Stock Advisor review to learn about the stock selection methodology and about how you can participate in excellent returns.
Stock Advisor is currently half off at just $99 for an annual subscription.
Can you Invest in Chime Stock? Four Potential Ways
Generally, it’s challenging to acquire shares of high demand IPOs. Most investors will need to settle for buying the stock after it begins trading.
IPO underwriters typically give their best customers access first, then allocate shares to certain institutions and brokers often tied by professional relationships.
When the largest brokers receive IPO shares, they divvy them up amongst their eligible customers, prioritizing their most valued customers first (wealthiest).
For high-demand deals, most investors will not get shares.
In recent years, a few brokers have partnered with the IPO investing app ClickIPO to give access to individual investors based on a proprietary rating instead of assets under management.
The ClickIPO rating, known as the Investor Score, rates higher those investors who hold IPO shares instead of flipping them.
Though ClickIPO has not demonstrated the ability to allocate app users with high-demand IPO shares, they’ve executed dozens of lesser-known IPOs on its platform.
For individual investors without a high net worth, ClickIPO and its partner brokers TradeStation and Webull are the most likely chance of participating in IPOs since the demise of LOYAL3 and Motif Investing.
With that, here are four potential ways to own Chime Stock:
- Buy Chime stock after it begins trading
- Buy Chime stock in the Chime IPO through a broker
- Buy Chime stock in the IPO through a potential directed share program (if applicable)
- Attempt to acquire Chime stock in pre-IPO secondary marketplaces before the IPO
1. Buy Chime stock after the Chime IPO
Since acquiring IPO shares is almost always challenging for individual investors, the easiest way to own Chime stock is to wait for the IPO to complete.
Realistically, unless your brokerage account is worth more than $1 million and your broker regularly receives IPO allocations, you are unlikely to get in on high-demand IPOs.
In some cases, patient investors can buy the stock at or below the IPO price. This is not always true.
The Beyond Meat IPO, for example, soared and never looked back. But Uber, which many predicted to rise steeply, actually fell on the IPO date.
Spending significant effort to acquire IPO shares may not be worth it in the end. You may also spend time and effort to obtain shares but only receive a small allocation, limiting upside gain.
Though IPOs can provide one-day gains north of 20%, even up to 100% in rare cases (such as Airbnb and Doordash), the most significant gains will come during the decade following the IPO if the company is genuinely disruptive.
Take, for example, Netflix, Amazon, or Tesla. You could have bought the stock years after the IPO and still experienced gains of more than 1,000%
If you’re an investor that wants to buy Chime stock for the long-term, consider opening a position after the IPO and averaging down if the stock falls.
Short-term traders may angle to acquire IPO shares and hope for a short-term pop.
2. Buy Chime stock in the Chime IPO through a broker
Ambitious investors can position themselves to invest in the Chime IPO once it arrives.
Your chances of getting IPO shares depends on four factors:
- IPO demand
- Your broker and eligibility
- Your assets under management at the broker
- Propensity to flip shares
As IPO demand increases, the chances of receiving IPO shares decreases. Therefore, the IPOs that are most interesting to the masses are the hardest to access.
Most online brokers do not offer IPO shares. Check directly to see if yours does, or look at our list of best brokers for IPO investing.
Legacy brokers, such as Fidelity and Charles Schwab, have minimum eligibility requirements and penalties for flipping shares (selling shortly after the IPO).
But even if eligible, the brokers must sub-allocate whatever limited shares they receive from the IPO underwriters.
This process is non-transparent, but priority is likely given to the wealthiest investors first.
For example, if your account balance is $500,000, and that makes you eligible according to terms, the broker may only have enough IPO shares to distribute to customers with assets of $3,000,000 or more.
This brings us to ClickIPO.
There is no minimum account value required.
ClickIPO prioritizes IPO share distribution by its Investor Score, which measures how likely an investor is to flip shares. Investors more likely to flip shares are considered to be less desirable IPO beneficiaries (in theory).
Therefore, ClickIPO offers a value proposition to underwriters and newly public companies.
Though quick profits from IPOs is one way the large underwriter reward whale-sized clients.
Click here to subscribe to Access IPOs and download the free 15-page eBook, How to Invest in IPOs – A Fundamental Guide for Ordinary Investors, which provides more detail on this dynamic.
Regardless of the four factors above, there is never a guarantee that any investor will receive a share allocation.
3. Buy Chime stock in the IPO through a potential directed share program (if available)
Occasionally, companies with an existing customer base offer IPO shares to a limited number of those customers through a directed share program.
Companies disclose the intent to implement a directed share program in the S-1 filing to the SEC, once released to the public. The program states that a certain number of shares are set aside to allow customers and affiliates the opportunity to buy IPO shares.
Those customers may receive an email leading up to the IPO, asking if they would like to participate. Customers participate on a first-come, first-served basis and must purchase shares to participate.
Directed share programs have become more prevalent in recent years. Uber, Airbnb, GoPro, and LendingClub all offered shares to customers and affiliates.
At this stage, there have been zero indications that Chime would offer a directed share program. However, it’s possible with their extensive customer base.
Customers should pay attention to the S-1 filing when released. Search for the term “directed share program” to see if there may be an opportunity to participate.
Keep in mind, Chime does not owe this to anyone. It will only happen if they want to reward customers for helping them grow. Even so, it’s likely only a small percentage of customers would be eligible and follow through with the investment.
This website will pay attention and update this section should a directed share program be initiated in the Chime IPO S-1 filing.
4. Attempted to acquire shares in pre-IPO secondary marketplaces
Founders, early employees, and investors often find themselves in a difficult predicament. They own valuable shares of a company that doesn’t trade publicly.
These shareholders might have multi-million dollar net worth’s because of their stock holdings, but the stock is not liquid because it doesn’t trade on an exchange.
Both sites bring liquidity to an otherwise illiquid asset. Accredited investors (those with invested assets > $1,000,000) may join these sites and attempt to buy these companies’ shares when they become available.
The shares are only offered to accredited investors because the company’s financials are not publicly filed with regulators yet, increasing the investors’ risk.
For high-profile companies, demand is high, lowering your chances of acquiring shares. The author considers this a low-likelihood way to acquire shares. However, some readers have written with success stories buying shares this way.
Where can I find the Chime S-1 Filing?
The Chime S-1 filing won’t be publicly available until released. Once it is public, we’ll post it here.
You can find a real-time SEC feed of the latest IPO filings from other companies on the recent S-1 filings page.
Best Brokers to Buy Chime Stock
What is the best online brokerage for buying Chime stock?
See the complete list of best brokers for IPO investing here.
Long-term buy and hold investors may prefer a broker not as geared toward frequent trading.
As an individual investor, you’ll want to open an account with a commission-free online broker. That way, you’ll invest most of your money instead of waste it on fees.
I’m a big fan of the online brokerage M1 Finance. M1 Finance is a reliable and robust, no-fee online broker for beginner to advanced investors.
As your investing skills and portfolio mature, M1 is one of the best platforms to scale.
Investing in stocks is 100% free on the platform. They also offer an integrated checking account and low borrowing rates. Read my complete M1 Finance review here.
The platform is more intuitive than old school brokers because it’s built on a modern technology platform. You create portfolio “pies” that contains all the stocks and ETFs you want to own and in what percentages. Add Chime stock to your portfolio pie once it begins trading.
M1 Finance does not offer IPO access. But it’s my favorite for long-term investing, which is my preferred strategy for disruptive IPO companies.
* Disclosure: The web page contains affiliate links from our partners. If a reader opens an account or buys a service from a link in this article, we may be compensated at no additional cost to the reader. Opening an account with a broker that provides access to IPOs does not guarantee the customer allocations of specific IPOs. The author is long ABNB, TSLA.