U.S. Semiconductor Company Astera Labs Holds IPO

Astera Labs is the latest U.S. technology company to hold an initial public offering (IPO).

Astera Labs’ stock begins trading on the Nasdaq exchange today (March 20) under the ticker symbol “ALAB.”

The company makes semiconductor-based connectivity products and operates in the red-hot field of artificial intelligence (A.I.) infrastructure.

Astera labs is going public at a valuation of $5.50 billion U.S., selling 19.8 million shares of its common stock at a price of $36 U.S. each. The company is raising $712.8 million U.S. from the share sale.

Astera, which counts Nvidia (NVDA) and Advanced Micro Devices (AMD) among its customers, has raised the IPO price of its shares in recent days, lifting it from an initial estimate of $27 U.S.

As is often the case with technology companies that go public, Astera Labs is unprofitable.

The company recorded a net loss of $26.3 million U.S. in 2023. However, that loss was significantly less than the loss of $58.3 million U.S. recorded in 2022.

Astera’s revenue continues to grow at a fast clip, rising 45% year-over-year in 2023 to $115.8 million U.S. from $79.9 million U.S. in 2022.

The company’s market debut comes a day before social media giant Reddit holds its IPO on the New York Stock Exchange in one of the most highly anticipated share offerings of the year.

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