The IPO Buzz: Astera Labs (ALAB Proposed) Increases IPO’s Size to $653.4 Million – Up 29 Percent

By Jan Paschal – Posted March 18, 2024 

Astera Labs (ALAB Proposed) – an AI play – increased  its IPO’s size early today to 19.8 million shares – up from 17.8 million shares – and raised the price range to $32.00 to $34.00 – up from $27.00 to $30.00. Under the new terms, Astera Labs expects to raise $653.4 million –  up from $507.3 million under its original terms – according to its S-1/A filing dated March 18, 2024. The new terms represent an increase of 28.8 percent in the IPO’s size.

Morgan Stanley, J.P. Morgan,  Barclays, Evercore ISI and Jefferies are the joint book-runners.

The IPO was increased by 2.0 million shares – and those shares will be sold by the company. The selling shareholders’ portion of the deal remains the same: 3.01 million shares. 

Astera Labs is looking at a market cap – or a valuation – of about $5.03 billion – up from $4.29  billion under the original terms. The new market cap assumes that Astera Labs’ IPO will be priced at $33.00, the mid-point of its new range.

The bankers expect to price Astera Labs’ IPO on Tuesday night, March 19, 2024, to trade Wednesday, March 20, on the NASDAQ.

The company, founded in 2017 in Santa Clara, California, is an AI play. Astera Labs offers a semiconductor connectivity Intelligence Platform to help its clients get the most out of the cloud and AI, the prospectus says. Astera Labs has collaborations with NVIDIA, Intel and others. The company is not yet profitable. But it has strong revenue growth – and its net loss for 2023 was down sharply from its net loss in 2022. Stay tuned.  (For more information about this company, please check the IPO Calendar and the individual IPO Profile found on our website: IPOScoop.com ) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.