Circle IPO loses $1.72 billion in potential gains, becoming the seventh largest IPO underpricing case in decades

According to Fortune magazine, stablecoin issuer Circle lost $1.72 billion in potential revenue due to its pricing strategy during its NYSE IPO on June 5, marking the seventh largest IPO underpricing case in nearly forty years. The company issued 34 million shares at $31 each, raising $1.1 billion, but the closing price on the first day of listing reached $82.84, a 167% increase.

Data shows that if priced at the closing price, Circle could have gained an additional $1.72 billion, equivalent to twice its pre-IPO balance sheet cash reserves. Jay Ritter, an IPO research expert at the University of Florida, pointed out that this difference is second only to the historical records of six companies, including Visa and Airbnb. Currently, Circle's market value is $16.6 billion, with a P/E ratio of 106 times its projected net profit of $157 million in 2024.