Stock

: The Canadian chipmaker Alphawave is aiming for a valuation of four.5 billion US for its IPO in London

Canadian chipmaker Alphawave IP said Thursday it was considering plans to go public on the London Stock Exchange, an unusual example of a North American company crossing the Atlantic to float.

Alphawave plans to set up a research and development center in Cambridge, which will give the UK government a welcome boost. She was keen to gain more technology lists to compete with major financial centers like the US.

The Toronto-based company said it succeeded in entering into cornerstone agreements with funds and accounts managed by BlackRock and Janus Henderson to subscribe for $ 510 million worth of offer shares, giving the company an equity valuation of approximately $ 4.5 billion. Dollars.

The IPO includes issuing new shares, raising approximately $ 500 million, and offering existing shares to be sold by current shareholders.

Plus: London plans to revise listing rules to attract tech IPOs and capitalize on the blank check boom

Founded in 2017, Alphawave is a semiconductor developer focusing on efficient, high-speed, high-volume data connection. He builds chips for computer systems, telephone networks and data centers that use relatively little electricity. The company said its technology has applications for 5G wireless infrastructure, artificial intelligence and autonomous vehicles.

Alphawave said it has been profitable since its first full year of operation in 2018 and that revenues increased more than 200% year over year from 2019 to 2020.

The company has grown aggressively in the UK through a partnership announced in March with Ensilica of Oxford, a leading developer of Custom Application Specific Integrated Circuit [ASIC] chips. Alphawave also counts the semiconductor giants TSMC
TSM,
-1.20%
and Samsung
005930,
-0.24%
among its partners as well as the European industrial group Siemens
YOU,
+ 0.89%,
that builds high-tech factories.

The IPO is being closely watched by investors for stakes in the UK grocery shipping company Deliveroo
ROO,
-0.90%
fell by almost a third on the first day of trading on the LSE in March.

Also read: British biotechnology company Oxford Nanopore is preparing for an IPO in London worth $ 3 billion

Since then, cybersecurity giant Darktrace has also announced plans to float in London. Some reports suggest that its IPO could value the Cambridge-based company at around $ 3 billion.

Some of the world's leading semiconductor designers are already based in the UK, such as Arm from Cambridge, which was bought by the US chip designer Nvidia
NVDA,
-0.72%
last year. The $ 40 billion acquisition is now facing a UK government investigation over national security concerns.

"We made the decision to come to the UK for the incredible technology and ecosystem of the semiconductor industry," said Tony Pialis, Alphaware's chief executive.

“The strong research base in the UK and our new R&D headquarters in Cambridge provide an excellent foundation for the next stage of our global growth. There is a deep pool of knowledge, experience and talent, ”he added.

The IPO is coordinated by Barclays
Great Britain: BARC
and JPMorgan
JPM,
-0.95%,
with BMO
BMO,
-0.44%
as a joint bookrunner as the offer progresses.

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