Wall Street broker Clear Street targets up to $11.8 billion valuation in US IPO

• Clear Street expects net revenue between $1.04 billion and $1.06 billion in 2025, up from $463.6 million in 2024, reflecting strong growth in the prime brokerage sector
• BlackRock-managed funds have indicated interest in purchasing up to $200 million worth of shares in the IPO
• The company will list on Nasdaq under the symbol 'CLRS' with Goldman Sachs, BofA Securities, Morgan Stanley, and UBS as lead underwriters

Summary: Clear Street Targets $11.8 Billion Valuation in US IPO

Key Transaction Details:

Clear Street, a securities and derivatives broker, is seeking a valuation of up to $11.8 billion in its upcoming US initial public offering. The company plans to raise up to $1.05 billion by offering 23.8 million shares and will list on Nasdaq under the ticker symbol "CLRS."

Market Context:

The IPO comes amid a resurgent market, with eight companies preparing to raise at least $100 million each in New York debuts this week—the busiest period for sizable offerings since 2021. Record-high equity markets and pent-up demand are driving activity after 2025's government shutdown disrupted deal flow.

Company Profile:

Founded in 2018 as a prime brokerage platform, the New York-based firm has expanded into investment banking and equity research. Clear Street provides critical services to hedge funds, including risk management, portfolio monitoring, and trade execution support.

Financial Performance:

The company has experienced significant growth, expecting net revenue between $1.04 billion and $1.06 billion in 2025, compared to $463.6 million the previous year—representing a more than 100% increase.

Investor Interest:

BlackRock-managed funds have indicated interest in purchasing up to $200 million worth of shares in the offering.

Underwriters:

Goldman Sachs, BofA Securities, Morgan Stanley, UBS Investment Bank, and Clear Street itself serve as lead book-running managers.

Market Implications:

The IPO reflects the booming prime brokerage sector, driven by surging hedge fund valuations and increased demand for financial market infrastructure services amid market volatility.