Alphawave decides in the upcoming IPO for London over New York

Semiconductor stocks are one of Barclays’ inflation hedge offerings.

Sefa Ozel | E + | Getty Images

LONDON – Canadian chip maker Alphawave is listed on the London Stock Exchange, avoiding the technology-centric Nasdaq stock market in New York.

The four-year-old company, which makes chip technology that can accelerate the flow of data through networks, announced Thursday that it plans to raise around $ 500 million in an initial public offering on the main London Stock Exchange.

Alphawave was founded by Tony Pialis, Jonathan Rogers and Raj Mahadevan in Toronto and plans to set up a research laboratory in Cambridge, where the chip designer Arm is also based.

BlackRock has pledged to buy shares valued at $ 390 million with an equity value of up to $ 4.5 billion, while asset manager Janus Henderson has agreed to buy shares valued at £ 85 million, or $ 120 million .

It’s a rare example of a North American tech company crossing the Atlantic to be listed on the London Stock Exchange, and a potential rebound for the UK stock market, which is in the spotlight after grocery delivery company Deliveroo hit a disastrous listing late last month would have.

“We made the decision to come to the UK because of the incredible technology and ecosystem of the semiconductor industry,” CEO Pialis said in a statement.

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

A number of big names in the chip industry – including Arm, CSR and Microelectronics – were previously listed on the London Stock Exchange, but many of them have been sold to overseas firms in recent years.

Alphawave’s IPO could pave the way for local AI chip company Graphcore, which is slated to go public later in the year.

Unlike many technology companies today, Alphawave claims it has been profitable since its first year of operation. It is said that total bookings are nearly $ 200 million. Some of the largest tech companies in the world have signed up as customers, including Samsung and TSMC. The company believes its overall addressable market opportunity for its current products could increase to $ 1.5 billion in 2025.

Alphawave has hired Barclays and JPMorgan to coordinate the listing, while BMO Capital Markets will assist them as bookmakers.

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