Stablecoin firm Circle adds to stellar first day gains with another stock surge

By Arasu Kannagi Basil

(Reuters) -Stablecoin issuer Circle Internet's shares climbed 48% on Friday, extending a stellar run after a blowout market debut on the New York Stock Exchange a day earlier.

New York-based Circle's stock went as high as $123.49, nearly four times its $31 offer price and valuing the company at $32.1 billion on a fully diluted basis.

The blockbuster listing also reinforced expectations that the IPO market was regaining its momentum after being stifled by tariff-driven volatility.

"This is big enough that it extends beyond crypto," said Matt Kennedy, senior strategist at Renaissance Capital, a provider of IPO-focused research and ETFs.

"This is the latest sign of building momentum in the IPO market. We'll likely continue to see moderate activity over the next month, but there is still some tariff uncertainty on the horizon, which is why we're expecting more of a full IPO rebound in the fall."

Wall Street executives also struck an optimistic tone on Thursday at an industry conference, emphasizing that markets were ready for the right companies.

NYSE President Lynn Martin said Circle's IPO was a bellwether for the IPO market this year and not just for crypto listings.

Investors are also realizing that the uncertain environment is going to be relatively persistent and focusing on putting their dollars at work, Nasdaq CEO Adena Friedman said.

"The successful debuts we have seen in recent weeks were largely by companies less exposed to international supply chain risks," said IPOX research analyst Lukas Muehlbauer.

Muehlbauer said it wouldn't be surprising if the pipeline stays more active in coming months, especially for companies in sectors shielded from tariff uncertainties, such as AI, defense or fintech.

Digital banking startup Chime is poised to go public next week. Sixth Street-backed cancer diagnostic firm Caris Life Sciences also joined the IPO pipeline recently.

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Sriraj Kalluvila and Alan Barona)

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