Astera Labs, a semiconductor-based connectivity company with artificial intelligence (AI) and cloud applications, will soon become a publicly traded company under the ticker ALAB. Last week, Astera revealed key details about its initial public offering (IPO).
Astera will offer 14.78 million shares, plus another 3.01 million shares that will be sold by its existing stockholders, for a total of 17.8 million shares. Astera won’t receive any proceeds from existing stockholder sales.
ALAB shares will trade on the Nasdaq Global Select Market. In addition, the IPO will help the company raise up to $534 million at a $4.51 billion valuation with a total of 150.5 million shares outstanding.
Astera’s last funding round in November 2022 valued the company at $3.15 billion. The round was led by Fidelity Management & Research.
ALAB Stock: Astera Provides IPO Details
Furthermore, Astera’s underwriters will receive a 30-day option to to purchase 2.67 million more shares at the IPO price, excluding any underwriting discounts and commissions. The IPO price of ALAB stock is expected to be between $27 and $30. Astera has not yet disclosed a specific IPO date.
In its Form S-1 filing, Astera disclosed 2023 revenue of $115.79 million, up by 45% year-over-year (YOY). Its gross profit improved to $79.82 million compared to $58.68 million a year ago.
At the same time, Astera is still unprofitable, reporting a 2023 net loss of $26.25 million and a diluted net loss per share of 71 cents. That improved from a net loss of $58.34 million and a diluted net loss per share of $1.71 in 2022.
“We believe our singular focus on cloud and AI connectivity, our software-defined platform architecture, and our system-level approach fortify our customer relationships, which are reinforced with each generational upgrade and new product family introduction, creating our durable competitive moat,” said Astera in its S-1 filing.
The company believes that its “Intelligent Connectivity Platform” currently has a total addressable market (TAM) of $17.2 billion, which will grow to $27.4 billion by 2027. Astera expects to have a larger market share as the TAM grows.
On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
