Ripple Labs is going through a tender offer to give early investors an exit route rather than a public offering. The transaction is expected to place the company’s valuation at $11.3 billion.
Ripple Labs is planning a tender offer to buy back a $285-million stake in the company from early investors and employees, according to a Reuters report citing sources familiar with the matter.
A Ripple spokesperson confirmed the transaction to Cointelegraph. Ripple plans to spend a total of $500 million in the process. The budget includes the cost of converting restricted stock units to common shares.
According to Reuters, investors will only be able to sell 6% of their holdings. The transaction will place the company’s valuation at $11.3 billion. As per Ripple’s profile on Crunchbase, it has raised a total of $293.8 million in funding over 14 rounds since 2015.
