Cerebras Systems, a maker of specialized chips for artificial intelligence workloads, is set to begin an initial public offering roadshow on Monday with an expected share price range of $115 to $125, a person familiar with the matter said.
This effort represents the company's second attempt to go public after it withdrew a prior IPO filing in October. Cerebras has not provided an immediate response to a request for comment about the renewed listing plans.
The company intends to list on the Nasdaq exchange using the ticker symbol "CBRS." A recent report from Bloomberg, cited in market coverage, indicated that Cerebras could raise as much as $4 billion through the offering and is targeting an approximate $40 billion valuation.
Cerebras is headquartered in Sunnyvale, California, and is known for developing wafer-scale engine chips. These processors are engineered to accelerate both the training and inference phases of large AI models, positioning the company in direct competition with Nvidia and other vendors of AI hardware.
On the financial front, Cerebras reported revenue of $510 million for the year ended December 31, up from $290.3 million in the prior year. The company also reported a profit of $1.38 per share for that period, reversing a loss of $9.90 per share reported a year earlier.
The underwriting group leading the offering includes Morgan Stanley, Citigroup, Barclays and UBS.
Summary
Cerebras is relaunching its IPO with a proposed share price band of $115 to $125 and plans to list on Nasdaq as CBRS. The company has reported accelerating revenue growth and a move back to profitability in the most recent year, and it has engaged a syndicate of major investment banks to lead the offering. According to media reporting, the offering could raise up to $4 billion and implies a valuation near $40 billion.
Key points
- Cerebras plans to start its IPO roadshow on Monday with a proposed $115-$125 price range for shares; it aims to trade on Nasdaq as CBRS. - Markets and capital formation
- The company recorded revenue of $510 million for the year ended December 31, up from $290.3 million the prior year, and reported earnings of $1.38 per share versus a prior-year loss of $9.90 per share. - Semiconductor and AI hardware sectors
- Lead underwriters for the deal are Morgan Stanley, Citigroup, Barclays and UBS; Bloomberg reporting suggests the offering could raise up to $4 billion with an implied valuation of around $40 billion. - Investment banking and public markets
Risks and uncertainties
- The timing and terms reported are based on information from a person familiar with the matter and media coverage; Cerebras did not immediately comment, leaving the final pricing and proceeds subject to change. - Capital markets
- The company previously withdrew an IPO filing in October, indicating that efforts to go public have not been linear and that the outcome of the renewed offering is not guaranteed. - Equity issuance process
- Market perceptions of competition with established AI hardware providers such as Nvidia and other firms could influence investor appetite for the offering. - Semiconductor and AI sectors
Bottom line
Cerebras is moving forward with a renewed attempt to list publicly, backed by stronger revenue and a return to profitability in the latest fiscal year. The company has enlisted major banks to lead the deal and is targeting a significant raise and valuation, according to published reports, while the final terms will depend on the progress of the roadshow and investor demand.