Circle IPO details: Secured $415 million in funding, expected to complete the listing in the fourth quarter

This article is an original piece by Chain Catcher, authored by Hu Tao.

Today, USDC issuer Circle announced that it has reached a definitive business combination agreement with NYSE-listed Concord Acquisition Corp ("Concord"). According to the terms of the agreement, a new Irish holding company will acquire Concord and Circle and become a publicly listed company, expected to be listed on the New York Stock Exchange in the fourth quarter under the ticker "CRCL." The transaction values Circle at $4.5 billion.
At the same time, this business combination is supported by a $415 million capital commitment, with participation from several top institutional investors, including Marshall Wace LLP, Fidelity Management & Research Company LLC, Adage Capital Management LP, and ARK Investment Management LLC. Combined with the cash contributions from Concord Acquisition Corp's trust account and Circle's recent completion of convertible note financing, Circle will receive over $1.1 billion in total proceeds at the closing of the transaction.
Upon completion of the transaction, existing Circle shareholders will maintain approximately 86% ownership in the combined company. The proceeds from the transaction will support Circle's continued growth through ongoing product development in close collaboration with early customers. If specific stock price targets outlined in the definitive business combination agreement are met, existing Circle equity holders may receive additional shares in the company. Existing shareholders of Concord will also become shareholders of the new company and will exchange their Concord common stock for equity in Circle.
Currently, the transaction has received unanimous approval from the boards of Concord Acquisition Corp and Circle, and is expected to be completed in the fourth quarter of 2021, pending approval from Concord and Circle shareholders and other customary closing conditions, including any applicable regulatory approvals.
"Circle's mission is to transform the global economic system through the power of digital currency and the open internet. We have made significant progress in achieving this vision, and with this strategic transaction and our eventual public debut, we are taking a larger step forward, equipped with the necessary capital and relationships to build a globally scaled internet financial services company that can help businesses around the world connect to a more open, inclusive, and efficient global economic system. We are excited to work with Concord's executive and investment team, leveraging their decades of operational experience in developing financial services businesses globally," said Jeremy Allaire, co-founder and CEO of Circle.