Astera Labs, which designs advanced chip-based connectivity products used in data centers, announced terms for its IPO on Friday.
The Santa Clara, CA-based company plans to raise $507 million by offering 17.8 million shares (17% secondary) at a price range of $27 to $30. At the midpoint of the proposed range, Astera Labs would command a fully diluted market value of $5.0 billion.
Astera Labs has developed its Intelligent Connectivity Platform for cloud and AI infrastructure. The platform comprises semiconductor-based, high-speed, mixed-signal connectivity products that integrate a matrix of microcontrollers and sensors; and COSMOS, its software suite which is embedded in its connectivity products and integrated into customers' systems. Since its inception, the company has created and commercialized first-to-market PCIe, Ethernet, and CXL products, and has had more than 300 design wins. Astera Labs sells its products primarily through distributors, though it also works with and sells directly to hyperscalers (AWS, GCP, Azure) and system OEMs.
Astera Labs was founded in 2017 and booked $116 million in revenue for the 12 months ended December 31, 2023. It plans to list on the Nasdaq under the symbol ALAB. Morgan Stanley, J.P. Morgan, Barclays, Deutsche Bank, Evercore ISI, and Jefferies are the joint bookrunners on the deal. It is expected to price during the week of March 18, 2024.
