Astera Labs IPO: Our view & details. Astera Labs (Nasdaq Ticker: ALAB) – the AI stock saw strong buying action during its IPO trading and even follow through this morning pushing its share price as high as $80 after pricing its IPO at $36. Here we analyze the future of Astera Labs after its IPO.
The first trade for ALAB was $52 and this one was a little bit below the radar screen. The big idea here is that we haven’t had this much IPO activity in quite a while. The IPO deal for Astera Labs was priced very strong and had very good market reception. That is a very bullish indicator. The caveat here is what happened in ALAB at the end of the trading day. The stock was up as much as 25% during the first trading hours before turning around and heading back down to $64 a share and posting a gain of only 3.5%. Profit taking in that stock is more than acceptable with it up more than 100% from the offering price and 60% up from the first trade.
Offering Details: The IPO consists of a total of 17.8 million shares.
Approximately 14.79 million shares are offered by the company itself.
Roughly 3.01 million shares are being sold by existing stockholders.
The stock was expected to be priced between $27.00 and $30.00 per share. In fact the IPO price increased to $36 per share.
The shares are trading on the Nasdaq Global Select Market under the ticker symbol “ALAB“.
Underwriters: Morgan Stanley and J.P. Morgan were acting as joint book runners for the offering. Other book runners included Barclays, Deutsche Bank Securities, Evercore ISI, and Jefferies.
Proceeds: Astera Labs itself will not receive any proceeds from the sale of shares by the existing stockholders.
The underwriters have a 30-day option to purchase up to an additional 2,670,000 shares of common stock from Astera Labs at the IPO price, less underwriting discounts and commissions.
Purpose and Focus: Astera Labs aims to unlock the full potential of cloud and AI infrastructure through purpose-built connectivity solutions.
Astera Labs supplies its products to such companies like Nvidia, Advanced Micro Devices, Intel Corp, Amazon.
The future of Astera Labs: our view: more details are provided on our site.
Financial performance needs improvement
Valuation
Summary
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