Astera IPO to raise half-a-billion dollars

Astera IPO to raise half-a-billion dollars

Business news |
By Peter Clarke

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Astera Labs Inc. (Santa Clara, Calif.), a 2017 startup developing connectivity chips for datacenters, has announced the launch of an initial public offering of shares in the company.

The offering consists of 14,788,903 shares of common stock offered by Astera Labs and 3,011,097 shares of common stock to be sold by certain of Astera Labs’ existing stockholders.

The initial public offering price is expected to be between $27.00 and $30.00 per share and this means that the IPO will raise between US$480 million and US$534 million. Astera Labs said it will not receive any proceeds from the sale of shares by the selling stockholders. The shares are expected to begin trading on the Nasdaq Global Select Market under the ticker symbol ALAB.

In addition, the underwriters will have a 30-day option to purchase up to an additional 2,670,000 shares of common stock from Astera Labs at the initial public offering price, less underwriting discounts and commissions.

According to regulatory filings the company is shipping products to all the major hypersalers in the world. The company made a net loss of US$26.26 million on sales revenue of US$115.8 million in 2023. The net loss was halved compared with previous year and the revenue was up 45 percent.

The offering of 14,788,903 shares represents 9.8 percent of the total number of issued shares, the filing added. Thus, the listing price of between US$27 and US$30 will value Astera at between US$4.07 billion and US$4.53 billion.

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