Clear Street cuts IPO target by 65%, trims valuation

Investing.com -- Wall Street broker Clear Street cut its U.S. IPO fundraising target by 65% on Thursday, significantly reducing its valuation projection as investors remains cautious of new listings.

The New York-based company now plans to raise up to $364 million by offering 13 million shares priced between $26 and $28 each. This marks a significant cut from its previous goal of raising up to $1.05 billion through 23.8 million shares at $40 to $44 each.

At the top end of the revised price range, Clear Street would be valued at approximately $7.2 billion, down from its earlier target of as much as $11.8 billion.

The company's decision follows similar moves in the IPO market. Brazilian fintech Agibank reduced its offering just one day before its market debut, following weak trading performance by competitor PicPay. Additionally, Liftoff Mobile postponed its planned U.S. listing earlier this month amid a broader selloff in the software sector.

The offering is expected to be priced later today. The company planes to list on Nasdaq under the ticker "CLRS."

Founded in 2018, Clear Street initially operated as a prime brokerage platform and has since diversified into other financial services, including investment banking.

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