Feb 12 (Reuters) – Wall Street broker Clear Street on Thursday cut the valuation it is seeking from its U.S. initial public offering to $7.2 billion, a big haircut from the initial target of $11.8 billion.
The New York-based company is now offering 13 million shares priced between $26 and $28 apiece. Clear Street had initially marketed 23.8 million shares priced between $40 and $44 each.
The revision comes despite a broader revival in IPO activity this year, as investors remain disciplined on valuations, seeking realistic pricing and showing caution toward richly priced listings.
Recent market volatility has further weighed on valuations, prompting companies to tread carefully and adopt more conservative deal terms as they prepare to tap public markets.
Brazilian fintech Agibank slashed its offering just a day before its debut, following weak aftermarket performance by rival digital bank PicPay. Separately, Liftoff Mobile postponed its planned U.S. listing amid a software sector selloff earlier this month.
Bloomberg News reported on Wednesday that Clear Street had faced investor pushback on the initial valuation target.
The offering is expected to price later on Thursday, and the stock will list on the Nasdaq under the symbol “CLRS”.
Founded in 2018 as a prime brokerage platform, the company has broadened its business, entering areas such as investment banking and equity research.
BlackRock, the world’s largest asset manager, is anchoring the IPO and has indicated interest in purchasing up to $200 million worth of Clear Street shares, according to an SEC filing.
Goldman Sachs, BofA Securities, Morgan Stanley, UBS Investment Bank and Clear Street are the lead book-running managers.
(Reporting by Arasu Kannagi Basil and Prakhar Srivastava in Bengaluru; Editing by Shailesh Kuber and Tasim Zahid)
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