Science & Technology

Intel-Backed Astera Seeks $534 Million in IPO

Astera Labs Inc. intends to raise as much as $534 million in an initial public offering (IPO).

Intel-Backed Astera Seeks $534 Million in IPO

Currently, the mentioned company, backed by Intel Corporation, is striving to meet investor demand for so-called artificial intelligence plays. The firm specializes in connectivity semiconductor-drive devices.

Astera sells 14.79 million shares. Existing investors are offering another 3.01 million securities. The relevant information is contained in a filing from the Santa Clara, California-based company to regulators, which was released on Friday, March 8.

Shares of the firm are offered for $27 to $30. The relevant information is contained in the mentioned statement.

Morgan Stanley and JPMorgan Chase & Co. are leading the sale. Last October, the media reported that Astera was collaborating with the specified financial institutions on an IPO in 2024. The company’s shares will be traded on the Nasdaq Global Select Market under the symbol ALAB.

Astera was founded in 2017. The company specializes in the development of semiconductor-based connectivity solutions to update artificial intelligence and machine learning in the cloud. The relevant information is available on the firm’s website.

The company found itself in the spotlight of investors as part of the 2022 funding round led by Fidelity Management & Research. At that time, the company raised $150 million. The market value of the firm at that point was fixed at $3.15 billion. The company’s list of investors includes Intel’s venture capital unit.

Over the past year, the share price of Nvidia and other artificial intelligence-related firms has risen sharply over the past year. This tendency was recorded against the background of the so-called AI boom. Against the corresponding economic background, stock indexes reached record values. In this case, a natural pattern is fixed, due to the global development of artificial intelligence technologies. It is worth noting that against the background of the rapid strengthening of AI capabilities, the problem of cybersecurity is becoming more relevant. In this case, user awareness is of particular importance. An Internet search query, such as how to know if my camera is hacked, will provide information about signs of unauthorized access to a personal device. Scammers have the possibility to use AI technologies, and their methods of action are becoming more sophisticated.

Returning to the topic of Astera’s IPO, it should be noted that the listing is scaling. More and more companies are interested in public offering of shares. For example, British chip developer Arm Holdings Plc, backed by SoftBank Group Corp., became a public company in New York in September. Reddit Inc., one of the largest players in the sphere of social media, is currently considering a listing worth up to $6.5 billion. This was reported by the media last week.

Klarna Bank AB, the Swedish fintech giant, formerly Europe’s most valuable startup, is moving forward toward a potential listing in the United States. This IPO could become one of the largest in 2024.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.