Wall Street broker Clear Street cuts US IPO valuation target to $7.2 billion

• The valuation cut from $11.8 billion to $7.2 billion marks a significant 39% haircut, reportedly due to investor resistance to the initial pricing
• Clear Street reduced its share offering by 45%, from 23.8 million shares initially marketed to 13 million shares
• Goldman Sachs, BofA Securities, Morgan Stanley, UBS Investment Bank, and Clear Street itself are serving as lead book-running managers for the offering

Summary

Clear Street IPO Valuation Slashed by 39%

Wall Street broker Clear Street significantly reduced its U.S. IPO valuation target to $7.2 billion from an initial $11.8 billion, representing a substantial 39% haircut. The New York-based company also scaled back its share offering, now planning to offer 13 million shares compared to the originally marketed 23.8 million shares.

Key Details:

• Listing Date: Expected to price Thursday, February 12, 2026
• Stock Symbol: CLRS on Nasdaq
• Lead Underwriters: Goldman Sachs, BofA Securities, Morgan Stanley, UBS Investment Bank, and Clear Street

Market Context:

According to Bloomberg News, the valuation cut followed significant investor pushback on the initial pricing target. This markdown reflects challenging market conditions for new listings and investor skepticism about the company's premium valuation.

Implications:

The dramatic reduction in both valuation and share count signals weakness in IPO market appetite and suggests institutional investors are demanding more conservative pricing. This development may impact other companies planning public offerings, as it demonstrates the current market's resistance to aggressive valuations. The successful placement of high-profile banks as underwriters indicates continued institutional support, albeit at significantly reduced terms.

This case highlights the tension between private market valuations and public market reality, particularly for financial services companies in the current environment. The outcome will serve as a barometer for upcoming IPO pricing strategies in 2026.