A former Ripple director suggests that Ripple’s potential initial public offering (IPO) could be a landmark event, given its estimated valuation.
In an X post yesterday, Sean McBride speculated that Ripple’s recent tender offer indicates that the company is valued at $30 billion.
Largest IPO in History
McBride derived the estimate after Ripple disclosed plans to repurchase $700 million worth of its own shares at a fixed price of $175 each. Sources revealed that Ripple announced the buyback initiative in an emailed statement to existing stockholders.
Notably, McBride derived the $30 billion estimate by multiplying Ripple’s offer of $175 per share by the total number of outstanding shares. According to McBride, if Ripple chooses to go public through an IPO at the estimated $30 billion valuation, it would be the largest in history.
Data from Renaissance Capital indicates that Saudi Aramco holds the title of the largest global IPO, having raised around $25.6 billion in 2019. Tech giant Alibaba ranks in the second position, raising roughly $21.76 billion in its September 2014 IPO.
With Ripple’s estimated valuation at $30 billion, McBride suggested that the company could surpass every IPO in history. He described the $30 billion valuation as “unreal,” underscoring how extraordinary such a feat would be if Ripple were to file for an IPO at that level.
Ripple IPO Potential Timeline
Speculation about Ripple’s potential IPO has intensified recently, with several experts predicting when the company might go public.
Last year, McBride predicted that Ripple might file for an IPO outside the United States by 2025. At the time, McBride made the prediction during the peak of the SEC v. Ripple lawsuit.
In addition, famous financial expert Linda P. Jones speculated that Ripple’s IPO could happen sometime this year. However, in McBride’s recent update, he stressed that Ripple would not be filing for an IPO anytime soon.
While major crypto-focused companies like Circle and Coinbase have gone public, Ripple does not prioritize an IPO due to its substantial cash reserves.
Instead, it is focusing on growing its business as reflected in its recent acquisition of Hidden Road for $1.25 billion. Ripple also attempted to acquire the leading stablecoin issuer Circle before the company went public, having raised $1.14 billion.
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