Cryptocurrency Business Boosts IPO Size Over Estimate for Fundraising of $1.1 Billion
Bullish, a crypto exchange company, has made a significant mark in the industry with its successful initial public offering (IPO). The offering raised $1.11 billion from the sale of 30 million shares of common stock, with the company's capital shares starting trading at the New York Stock Exchange under the ticker name BLSH on August 13.
The IPO priced Bullish at around $5.4 billion initially, but the company's shares rose significantly on the first day of trading. Closing at $68 per share, this represented an approximately 84% increase from the initial price, pushing Bullish's fully diluted market cap to nearly $10 billion.
This strong debut is a testament to the substantial interest and oversubscription that Bullish's IPO experienced, with demand exceeding share allocation by 20 times. The company, which is backed by notable investors including Peter Thiel’s Thiel Capital and Galaxy Digital Ventures, is one of several crypto company offerings this year that are part of a transformative trend towards compliance.
The success stories of eToro Group and Circle Internet Group have influenced other crypto companies to pursue public offerings. While Bullish's IPO is not the first crypto company offering this year, others have also gone public via SPAC acquisition and private-public partnerships.
J.P. Morgan, Jefferies, and Citigroup acted as lead book-running managers for the offering, with Cantor, Deutsche Bank Securities, and Société Générale, Canaccord Genuity, Keefe, Bruyette & Woods, A Stifel Company, Oppenheimer & Co., and Rosenblatt acting as co-managers. The trading of Bullish's shares began ahead of the offer's expected closing date, which is August 14, subject to customary closing conditions.
The offering raised notably received proceeds partly in stablecoins, a cryptocurrency pegged to fiat currency. Bullish initially targeted a valuation between $4.8 billion and $5.4 billion based on share pricing ranges and number of shares offered before trading began. However, the strong demand for the IPO led to a higher pricing of $37 per share. The company has also granted underwriters a 30-day option to purchase up to 4,500,000 additional ordinary shares at the IPO price.
The IPO by Bullish is a part of a broader trend in the crypto industry to move towards compliance, as companies are increasingly seeking to operate within traditional financial regulations. This trend towards compliance is part of a transformative movement in the crypto industry, signalling a shift towards mainstream acceptance and adoption.
[1] Bullish's website statement [2] CNBC report [3] Bloomberg report [4] MarketWatch report [5] Reuters report
- The successful initial public offering (IPO) by Bullish, a crypto exchange company, reveals significant insights into the growing interest in finance and investing related to technology and cryptocurrencies, as evidenced by the robust demand for their shares, surpassing allocation by 20 times.
- Noteworthy news in the finance industry includes the influx of crypto company offerings like Bullish, striving for compliance and mainstream adoption, exemplified by their IPO's nearly $10 billion market cap, a testament to the transformative trend in technology and the crypto sector.
