Canadian chip developer Alphawave IP is expected to float in London after establishing a benchmark valuation of $ 4.5 billion from leading investors backing the initial public offering.
The company, founded just four years ago, is developing chip technology that transmits data through data centers and telephone networks. He intends to raise more than $ 500 million via a London listing and set up a research center in Cambridge, at the heart of the UK semiconductor industry, known as’ Silicon Fen ”, As part of its expansion.
The company will move its headquarters to the UK as part of the float, which will give a significant boost to the government’s ambitions to attract more tech companies to Britain.
BlackRock and Janus Henderson have agreed to buy $ 510 million of shares at a stock value of up to $ 4.5 billion. The company will sell at least a quarter of its shares under the proposed free float.
The potential IPO will bring the UK listed tech sector to life and boost London markets. The collapse in value of Deliveroo, which floated in London last month, had cast doubt on the London market’s ability to attract other tech companies.
London once had a thriving listed chip industry, but companies such as Arm Holdings, Wolfson Microelectronics and CSR have all been sold to commercial competitors or financial buyers.
Tony Pialis, CEO of Alphawave IP, said the UK is a natural home for his business. “We can’t think of a better place to continue our expansion,” he said.
He added that with the amount of data increasing rapidly as networks grow, the connectivity segment is the fastest growing part of the semiconductor market.
“There’s a lot of press on processors, Arm and AMD, but you can’t have processing without connectivity,” he said.
Barclays and JPMorgan act as coordinators and bookmakers alongside BMO Capital Markets.