Credo Technology Group Holding, which provides semiconductor solutions for optical and electrical Ethernet applications, announced terms for its IPO on Tuesday.
The San Jose, CA-based company plans to raise $275 million by offering 25 million shares (6% secondary) at a price range of $10 to $12. New investors BlackRock, Capital Research, and GIC intend to purchase $120 million worth of shares in the offering (44% of the deal). At the midpoint of the proposed range, Credo Technology Group Holding would command a fully diluted market value of $1.8 billion.
The company states that it is an innovator in providing secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data generation and corresponding bandwidth requirements increase throughout the data infrastructure market. Credo's connectivity solutions are optimized for optical and electrical ethernet applications. Its product families include Integrated Circuits (ICs), Active Electrical Cables (AECs), and SerDes Chiplets. Its intellectual property (IP) solutions consist primarily of SerDes IP licensing.
Credo Technology Group Holding was founded in 2008 and booked $70 million in revenue for the 12 months ended October 31, 2021. It plans to list on the Nasdaq under the symbol CRDO. Goldman Sachs, BofA Securities, Cowen, Mizuho Securities, Needham & Co., and Stifel are the joint bookrunners on the deal. It is expected to price during the week of January 24, 2022.
