CoreWeave priced its initial public offering at $40 per share, below its earlier midpoint estimate of $51, raising $1.5 billion through the sale of 37.5 million shares, the company announced Thursday night. The listing gives the artificial intelligence infrastructure firm an estimated valuation of $20 billion.
The offer consists of 910,000 shares sold by current shareholders and 36.59 million freshly issued Class A ordinary shares. Underwriters may also buy up to 5.63 million more shares within 30 days. Friday will see the shares start trading on the Nasdaq under the ticker code CRWV; subject to usual closing conditions, the offering is anticipated to finish on March 31.According to a previous U.S. Securities and Exchange Commission filing, CoreWeave had first sought to collect as much as $2.4 billion at the $51 midpoint price across a bigger 47 million-share offering. Early CoreWeave investor Nvidia (NVDA, Financials) is anticipated to buy $250 million worth of shares at the IPO price. The firm was 6% owned by the chipmaker.Alongside a net loss of $863 million, CoreWeave recorded $1.92 billion in sales for 2024, a 700% rise from the previous year. A regulatory filing revealed Microsoft (MSFT, Financials) to be 62% of the 2024 income of the corporation.By year end 2024, the firm operated 32 data centres with over 250,000 graphics processing units. CoreWeave competes in the hyperscale AI cloud infrastructure sector against big competitors such as Amazon (AMZN, Financials) and Alphabet’s Google (GOOG, Financials).
This article first appeared on GuruFocus.
