Thursday 22 April 2021 10:56 am

Canadian semiconductor firm Alphawave plans $4.5bn London IPO

Toronto-based Alphawave is planning a London listing after setting a valuation of $4.5bn from cornerstone investors.

The company is just four years old and develops technology that pushes data through data centres and phone networks.

Alphawave said funds and accounts managed by Blackrock and Janus Henderson have entered agreements to subscribe $510m of offer shares to value the company at $4.5bn on admission. The company will sell at least a quarter of its shares.

And in a move that will please the government the company will move its headquarters to the UK as part of the listing.

“We have chosen to come to the UK because of its incredible technology and semiconductor industry ecosystem. The strong research base in the UK – and our new R&D headquarters in Cambridge – offers an excellent foundation for the next stage of our global growth,” chief executive Tony Pialis said.

London’s IPO market has had a strong start to the year but the collapse in Deliveroo’s value on admission has cast doubt on how well London can host tech firms.

The City has previously had a strong chip sector but companies like Arm Holdings have since been sold.

But Pialis said “We can’t think of a better place to continue our expansion.”

Barclays and JP Morgan are acting as joint co-ordinators and bookmakers with BMO Capital Markets.