Cerebras Systems Inc. opened for trading on Thursday at $350 per share, 89% above the company’s initial public offering price of $185 per share, bringing the AI chipmaker’s valuation to approximately $100 billion.
The company priced its IPO on Wednesday at $185 per share for 30 million shares of Class A common stock, raising $5.55 billion. The final pricing exceeded the original terms of 28 million shares at $115 to $125 each, which were revised to $150 to $160 before the overnight pricing. The final price represents a fully diluted valuation exceeding $56 billion, more than double the roughly $23 billion private valuation Cerebras held in February.
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Institutional orders reportedly surpassed available shares by more than 20 times, prompting the company to raise both the price range and share count twice during the roadshow.
This marks Cerebras’ second attempt at going public. The company initially filed in 2024 but withdrew after its partnership with UAE-based AI firm G42, which represented over 80% of its revenue in the first half of that year, triggered a national security review by the Committee on Foreign Investment in the United States. The committee later cleared the arrangement.
According to a Bloomberg report earlier this week, Arm Holdings and SoftBank Group Corp. had made a last-minute acquisition bid for the company, which Cerebras declined.
Morgan Stanley, Citigroup, Barclays, and UBS Investment Bank served as lead book-running managers for the offering. Mizuho and TD Cowen were acting as bookrunners, while Needham & Company, Craig-Hallum, Wedbush Securities, Rosenblatt, Academy Securities, Credit Agricole CIB, MUFG, and First Citizens Capital Securities served as co-managers.
source https://www.investing.com/news/stock-market-news/cerebras-shares-jump-89-in-nasdaq-debut--pushing-market-cap-to-100-billion-4689610
