Astera Labs, a chip firm, announced on Tuesday the pricing of its initial public offering (IPO) of 19.8 million shares at $36 each, with the aim of raising approximately $712.8 million.
This pricing exceeds the previously targeted range of $32 to $34 per share, resulting in a valuation of approximately $5.5 billion based on the outstanding shares detailed in its filings with the U.S. Securities and Exchange Commission.
The company is set to commence trading on the Nasdaq Global Select Market under the ticker symbol “ALAB” on March 20, according to Astera Labs.
This IPO occurs amidst the increasing popularity of AI and its impact across various sectors, leading to a surge in technology firms’ stocks, such as Nvidia NVDA.O, reaching record highs.
Astera Labs anticipates gross proceeds of around $604.4 million from the offering, as stated in a press release.
Headquartered in California, the company provides essential data center components to its clients, including major cloud service providers. Its previous funding round in 2022 valued it at $3 billion.
Morgan Stanley and J.P. Morgan are serving as joint book runners for the offering
