Clear Street, a New York-based Wall Street broker, has materially reduced the valuation it is pursuing in its planned U.S. initial public offering to $7.2 billion, the company said on Thursday. That figure represents a significant decrease from the previously marketed target valuation of $11.8 billion.
The firm is now offering 13 million shares in the IPO, with a proposed pricing range of $26 to $28 per share. In its earlier marketing effort, Clear Street had proposed selling 23.8 million shares with an indicated price band of $40 to $44 per share.
Bloomberg News reported on Wednesday that investor pushback had been directed at the original valuation target. The change in offer size and the narrower, lower price range reflect the revisions made ahead of the expected pricing later on Thursday.
Following the pricing, Clear Street's shares are scheduled to list on the Nasdaq exchange under the ticker symbol "CLRS". The banks serving as lead book-running managers on the transaction are Goldman Sachs, BofA Securities, Morgan Stanley, UBS Investment Bank and Clear Street itself.
The planned reduction in both the number of shares and the price band constitutes the key structural change announced prior to the anticipated pricing window later in the day. Market participants will observe the ultimate price and allocation once the deal is formally priced.
Contextual note - The company provided the updated offering parameters and the listing identifier. A media outlet reported investor pushback on the initial valuation target, which preceded the updated terms. The offering remains scheduled to price later on Thursday.
This report summarizes the revised IPO parameters and identifies the institutions leading the book-running effort. Additional details about final allocations, investor demand, and aftermarket performance will only become available after the offering prices and begins trading.