(Bloomberg) — Astera Labs Inc., an Intel Corp.-backed semiconductor connectivity company, raised the size of its planned initial public offering by 26% as the investor frenzy around artificial intelligence plays picks up steam.
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Astera and its investors plan to sell 19.8 million shares at $32 to $34 each, according to an updated registration statement filed Monday with the Securities and Exchange Commission. The offering would raise as much as $673.2 million.
Previously, the IPO consisted of 17.8 million shares at $27 to $30 each, or as much as $534 million.
The additional shares will come entirely from Astera, boosting the amount the Santa Clara, California-based company will raise in the listing.
At the top end of the new price range, the company would have a market value of about $5.2 billion based on the outstanding shares listed in its filings. Including stock options and restricted share units, Astera would have a fully diluted value of $5.7 billion.
Founded in 2017, Astera develops semiconductor-based connectivity solutions with the aim of enabling the “mainstreaming” of AI and machine learning in the cloud, according to its website. Astera tapped into investor bullishness on AI as part of a 2022 funding round led by Fidelity Management & Research that raised $150 million at a $3.15 billion valuation. The company’s investors include Intel’s venture arm.
Nvidia Corp. and other AI-related stocks have soared over the past year, helping to lift stock indexes to record highs.
(Updates with valuation in fifth paragraph.)
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