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(Reuters) -Astera Labs said on Friday it was eyeing a valuation of up to $4.51 billion in its U.S. initial public offering, as the chip firm looks to list amid a wave of enthusiasm for artificial intelligence.
The demand for high-end chips used in AI has surged given the recent generative AI advances, which have led to a rally in technology firms and propelled the stock market to record highs.
The company said it, along with some of its existing shareholders, is aiming to raise up to $534 million by selling 17.8 million shares priced between $27 and $30 each.
Astera is offering nearly 14.8 million shares, while the selling stockholders are offering about 3 million shares.
Social media platform Reddit has also lined up its highly anticipated U.S. stock market debut this month.
Astera, which was valued at more than $3 billion after a late-stage founding round in 2022, offers vital data center components to its customers such as large cloud service providers.
The company’s Aries product, which generates the majority of its revenue and helps CPUs and GPUs scale their data input/output bandwidth, competes with those offered by chip companies Marvell (NASDAQ:) Technology and Parade Technologies.
Astera also has other products, including Taurus, which provides AI servers with faster network bandwidth, while Leo enables CPUs and GPUs to scale their memory bandwidth and capacity.
Founded in 2017, the Santa Clara, California-based company collaborates with data center infrastructure suppliers such as Nvidia (NASDAQ:), Intel (NASDAQ:) and Advanced Micro Devices (NASDAQ:).
Astera, the name of which is inspired by astronomy and means “star-like”, uses a fabless manufacturing model and has a partnership with Taiwan Semiconductor Manufacturing Co to manufacture its integrated circuits.
Astera will list its shares on the Nasdaq Global Select Market under the ticker symbol “ALAB”.
Morgan Stanley and J.P. Morgan Securities are the lead underwriters for the offering.