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Chip connectivity firm Astera Labs ups deal size by 29% ahead of $653 million IPO

March 18, 2024

Astera Labs, which designs advanced chip-based connectivity products used in data centers, raised the proposed deal size for its upcoming IPO on Monday.

The Santa Clara, CA-based company now plans to raise $653 million by offering 19.8 million shares (15% secondary) at a price range of $32 to $34. The company had previously filed to offer 17.8 million shares (17% secondary) at a range of $27 to $30. At the midpoint of the revised range, Astera Labs will raise 29% more in proceeds than previously anticipated.

Astera Labs has developed its Intelligent Connectivity Platform for cloud and AI infrastructure. The platform comprises semiconductor-based, high-speed, mixed-signal connectivity products that integrate a matrix of microcontrollers and sensors; and COSMOS, its software suite which is embedded in its connectivity products and integrated into customers' systems. Since its inception, the company has created and commercialized first-to-market PCIe, Ethernet, and CXL products, and has had more than 300 design wins. Astera Labs sells its products primarily through distributors, though it also works with and sells directly to hyperscalers (AWS, GCP, Azure) and system OEMs.

Astera Labs was founded in 2017 and booked $116 million in revenue for the 12 months ended December 31, 2023. It plans to list on the Nasdaq under the symbol ALAB. Morgan Stanley, J.P. Morgan, Barclays, Deutsche Bank, Evercore ISI, and Jefferies are the joint bookrunners on the deal. It is expected to price during the week of March 18, 2024.