Clear Street, a Wall Street brokerage firm based in New York, dramatically scaled back its initial public offering plans by cutting its targeted U.S. fundraising by 65%. The firm narrowed the size of the share sale and lowered its price range as investor appetite for new listings has shown strain.
Under the revised terms, Clear Street intends to offer 13 million shares at a price range of $26 to $28 apiece, targeting gross proceeds of up to $364 million. That represents a substantial reduction from the company’s earlier objective of raising as much as $1.05 billion by selling 23.8 million shares with a proposed price band of $40 to $44.
Using the top end of the updated range, the company’s projected valuation would be about $7.2 billion, down from the previous ceiling near $11.8 billion. The offering is slated to be priced later today, and the firm plans to list on the Nasdaq exchange under the symbol CLRS.
Clear Street’s decision to scale back follows other recent adjustments and delays in the IPO market. The company’s move came after Brazilian fintech Agibank reduced its offering a day before debuting, in the wake of weak trading from competitor PicPay. Separately, Liftoff Mobile postponed its planned U.S. listing earlier in the month amid a broader selloff in the software sector.
Founded in 2018, Clear Street began as a prime brokerage platform and has since expanded into a range of financial services, including investment banking.
Contextual note - The company announced the scaled-back offering amid a market environment where recent listings have provoked caution among investors. The revised size and price range reflect Clear Street’s response to that sentiment.
What’s next - Pricing for the offering is expected later today and, if completed, Clear Street will proceed with a Nasdaq listing under the ticker CLRS.
Summary of terms
- Shares to be offered: 13 million
- Revised price range: $26 to $28 per share
- Maximum expected proceeds: up to $364 million
- Previous target: up to $1.05 billion via 23.8 million shares at $40 to $44
- Implied top-end valuation now: approximately $7.2 billion (down from about $11.8 billion)