It's not often you see a North American company go public across the pond, but that's exactly what Alphawave IP is doing in their upcoming IPO. The semiconductor manufacturer is debuting at a time when chips are in short supply but demand is soaring.
Alphawave will soon call the London Stock Exchange home, but how soon is that coming and what price can investors expect to get in at?
Amid IPO news, Alphawave shares they're moving to the U.K.
Alphawave is doing more than listing on the London Stock Exchange. They're moving their global headquarters from Toronto to Cambridge, U.K.
This courtship with the U.K. is interesting. The London Stock Exchange has been trying to get big IPOs for a while now, and the Deliveroo debut did nothing good for them. With such high demand for semiconductors, the chip industry likely won't get hit with regulation in the same way the gig economy has, which could mean increased stability for Alphawave IPO stock.
The real question: Is Alphawave profitable?
Any company that's heavily invested in research and development tends to avoid the profitability question. This includes a lot of newer tech brands, but Alphawave seems to have achieved profitability unlike others in the sector. They report that they've been profitable since 2018, just a year after launching.
So far, the claims of profitability cannot be verified because their documentation hasn't been revealed. Investors may want to take it with a grain of salt, but it's still promising.
Alphawave has a healthy projected IPO valuation
The company reportedly plans to raise $500 million in the offering. This would bring their corporate valuation to $4.5 billion.
With retail share price still unveiled, institutional investors are flocking
It's pretty rare that an average investor gets access to IPO-price stock, because institutions tend to snag up available shares before they hit the retail arena. In this case, BlackRock is promising to buy $390 million worth of shares from Alphawave. A U.K. asset manager called Janus Henderson is buying $120 million worth of shares. As for the actual share price, we're still waiting on that part.
Keep your eyes peeled for a stock symbol.
Information on Alphawave's ticker symbol and share price will be soon to come. It's unclear how far out the actual debut is, but the next steps will clarify things.
When is Alphawave going public? The answer is unclear.
So far, no date has been set for the Alphawave IPO. However, the inevitability of the debut is enough to excite investors far from London.
How to buy Alphawave IPO stock on the London Stock Exchange
American investors may be able to purchase Alphawave using American Depository Receipts (ADRs). These trade in the same way regular stocks do but often carry higher fees. There's also the option to get a foreign stock brokerage account, though this avenue is usually reserved for dedicated or high net worth investors.