Chip firm Astera Labs,on Tuesday set the pricing of its initial public offering (IPO) of 19.8 million shares at $36 apiece, aiming to raise around $712.8 million.

The offering consists of 14,788,903 shares of common stock offered by Astera Labs and 3,011,097 shares of common stock to be sold by certain of Astera Labs’ existing stockholders. Astera Labs will not receive any proceeds from the sale of shares by the selling stockholders.

The company priced its IPO above its previous target range of $32 to $34 apiece, giving it a valuation of about $5.5 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission.

The company's shares are expected to begin trading on Nasdaq Global Select Market under the the ticker symbol "ALAB" on March 20, Astera Labs said.

The listing comes at a time when growing popularity of AI and its influence across various sectors has been driving a rally in technology firms, propelling stocks of companies such as Nvidia,to record highs.

The gross proceeds are expected to be around $604.4 million, Astera Labs said in a statement.

The California-based company offers vital data center components to its customers including large cloud service providers. It was valued at $3 billion in its last funding round in 2022.

Morgan Stanley and J.P. Morgan are the joint book runners for the offering.

About Astera Labs

Astera Labs is a global leader in purpose-built connectivity solutions that unlock the full potential of cloud and AI infrastructure. Our Intelligent Connectivity Platform integrates PCIe, CXL and Ethernet semiconductor-based solutions based on a software-defined architecture that is both scalable and customizable. Inspired by trusted partnerships with hyperscalers and the data center ecosystem, we are an innovation leader of products that are flexible, interoperable, and reliable.

▼▼▼

"The world's most powerful chip" — Nvidia says its new Blackwell is set to power the next generation of AI

Infinera Corporation Announces Notification of Delinquency with Nasdaq

TSMC considering advanced chip packaging capacity in Japan, sources say

Qualcomm inaugurates new design center in Chennai

Ericsson and Nokia plan foray into chip development

China's chip industry crisis: Over 10,000 firms close amid economic challenges