📖 Your Q2 Earnings Guide: Discover the Stocks ProPicks AI Highlights to Jump Post-EarningsRead more

Astera Labs, Reddit Set to Debut as IPO Activity Remains Low for 2024

Published 03/18/2024, 09:49 AM
NTHI
-
RDDT
-
ALAB
-

Last week we wrote about how M&A activity has been light​ so far for 2024, well the same holds for IPO activity. However, next week brings two highly anticipated public debuts that could reignite hopes for an upswing in IPOs.

Astera Labs and Reddit Going Public

Astera Labs (NASDAQ:ASTB), a semiconductor company that builds connectivity solutions to help with AI and Machine Learning workloads, is set to IPO on Wednesday, March 20. The Intel-backed company will make their public debut by offering 17.8M shares in a share price range of $27 - 30, putting its IPO raise at as much as $534M, with a valuation of $5B.

This will mark the first big semiconductor debut since ARM Holdings back in September. Speaking of ARM, their IPO lockup period ended on Tuesday, March 13 and was met with increased trading activity, but ultimately share prices have remained flat since then. 

Reddit (NYSE:RDDT) will make its long-awaited public debut on Thursday, March 21. The debut offering will feature 22M shares, in a price range of $31 - 34, making for a total raise amount of $715M on the high end, and a valuation of close to $6.5B.

IPO Activity Light Year-to-Date

Despite these two high-profile debuts, YTD has otherwise been light for IPOs which are still facing headwinds from higher interest rates making private companies hesitant to come to market. In January and February, there were only 34 IPOs, vs. a 5-year average of 93. So far in March only Neonc Technologies Holdings (NASDAQ:NTHI) has filed for an IPO.New IPOs

Source: Wall Street Horizon

Looking Ahead

How Astera Labs and Reddit perform next week and in the weeks following their public entrance will likely impact how confident other private companies are in IPOing in 2024. Last year’s IPO glut was in-part due to the worse-than-expected performance of many newly public companies. Poor business conditions caused companies such as Reddit to delay their plans to go public. With interest rates expected to fall later this year and the continued path to a soft landing, this could be just the recipe needed for a resurgence in IPO activity.​

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.