The Arteris Inc. IPO is going to start trading on October 27. The company will offer about five million shares. The firm has kept the price range of the IPO between $14 and $16. The company will utilize the proceeds from the offering for general corporate use and working capital. BMO Capital Markets, Cowen, and Jefferies are the joint lead book-running managers for the Arteris Inc. IPO. The underwriters have the choice to buy an additional 0.75 million shares.
In previous generations, the concept of self-sufficient computer protocols and self-driving vehicles fascinated American cultures and scientists. These and other intelligent solutions were always in development mode and were shown in many science-fiction movies. But the engineering ambitions did not align with the technology available at that time. That is until the system-on-chip semiconductors, or the SoC came along. In the typical PC, the central processing unit is the soul and heart of the underlying system. Yet, it alone cannot meet the overall demand that current users need frequently. Instead, PCs have separate components, such as wireless radios, power management circuits, USB controllers, memory cards, and graphics processing units.
Integrating all of these parts introduces complexity to the system. There is also increased energy consumption and physical space requirements. This is an era where governance, social, and environmental concerns are supreme in the minds of everyone. Here, the greatness of Soc chips is that they combine multiple functions into one single unit. Such consolidation can help in innovations in machine learning and artificial intelligence that were unthinkable earlier. Arteris is a specialist in SoCs. So, the Arteris Inc. IPO has attracted a lot of interest. It is facilitating the wider technology space apart from giving the upside of its potential.
What is the date of the Arteris Inc. IPO?
The company has great relevance, more so in times of the current semiconductor supply shortage. Thus, the Arteris Inc. IPO is one of the most anticipated offerings for the week beginning October 25. So, investors should guard themselves for a chance of great price movement very early on. The company's journey to the capital market started several months ago when the management shared its intent to go public with the Securities and Exchange Commission of the United States. After that, the company said that it was planning to raise an amount of $75 million. A few months later, the company disclosed the terms of its deal. The Arteris Inc. IPO would have five million shares at a price range of $14 to $16 per unit.
At the midpoint of the spectrum, the company will get a fully diluted market value of $555 million. The joint book-running services are Bank of Montreal, BMO Capital Markets, the whole banking business, Cowen, and Jefferies Financial. Should the processes go as expected, the Arteris Inc. IPO will be priced on October 26. The shares will list on the Nasdaq exchange under the symbol AIP. The Arteris Inc. IPO is going to go live on October 27. Interested investors of the Arteris Inc. IPO will be happy to know that this is the period of the IPO. Some reports said that the number of new IPOs has decreased by a lot in the third quarter of this year. But they have also reported that the number of IPOs in the initial nine months of the year was the highest in the past two decades since the dot com bubble.
Among the first-timers are the semiconductor firms. They have taken advantage of the chip boom. But investors should still be a little cautious about a probable IPO bubble being created. More specifically, to Arteris Inc. IPO, the underlying company is going up against the very hype debut of GlobalFoundries. This could affect how much cash goes into the company over its sector opponent.
Arteris Inc. IPO Financial History
The company may not be the largest tech company around. But its total addressable market is met with serious respect. As per info given by Data Bridge Market Research, tech industry experts say that the SoC market will get to an estimated valuation of $501.8 billion in the next seven years. This target is the compound annual growth rate of a little over 8% in the next seven years. As the research firm said, SoC is an integrated circuit that has many electronic components. This includes the internal memory, output and input ports, the CPU, and many other parts. All of these elements are combined on a single and tiny chip. Also, SoC can do several things, such as using artificial intelligence, wireless communication, and signal processing. There are also other functions that it performs.
In the past two decades, the company has obtained private funding. It has raised more than $50 million in over five rounds. The last raise happened nearly half a year ago. This resulted in proceeds of over $5 million. Some of the major backers of the company are Synopsys and Qualcomm. Further, the company reported a revenue of over $31 million in the past year. This was just a little under 1% of the $31.5 million reported a year before that. This is because the momentum spiked this year from the international supply chain shortage. This put a spotlight on the semiconductor industry. For one year ending June of this year, the company got $38 million in revenue.
But profitability will be a significant concern for Arteris Inc. IPO moving forward. On a broader scale, the amount of money going into unprofitable firms has not been this great since the dot com bubble. The craze in cryptocurrency trading has also played its part. There is no doubt that the underlying fundamentals are questionable. There is a probability that the retail investors can lose their calm if the music stops suddenly. In terms of the profitability and challenges faced by the company, it reported operating losses of nearly $4 million. This was mainly because of the increase in development, research, administrative, and general expenses. So, investors should balance their optimism with the challenges that lie before the company.
Arteris Inc. IPO Potential
Prospective investors can look to some game-changing catalysts when examining the upside potential of Arteris Inc. IPO. This includes the longer-term outlook for machine-learning initiatives and artificial intelligence and the international supply chain crisis. The ongoing supply chain crisis has been great due to its holistic nature. The factories cannot create more products because the raw materials they require, such as chemicals and specialized parts, are absent due to the supply chain headwinds and their shortage. This is also leading to people being unemployed in the US. If that was not bad enough, solutions are being suggested that it will not arrive soon. Essentially, the company can charge whatever it wants. The clients will have no choice but to pay the amount. As long as these circumstances remain, the company can cover up its financial weaknesses.
In a longer-term outlook, more firms are interested in pushing the innovative narrative ahead, such as autonomous vehicles being commercialized. To get this done, however, next-gen platforms need advanced computing systems. Unlike the usual systems, SoC can give technical functions on its own since the components required are situated in one platform. It is energy efficient and has a space-saving design. This alleviates the concerns of industries and governments. Firms have little choice now but to change their operation according to ESG principles. This stems from preventing plausible deniability of climate change. These factors also boost Arteris Inc. IPO.
The Arteris Inc. IPO is the foundation for many innovations that are now entering feasibility. The company makes a great case for investors needing a public market debut. At the same time, investors should balance the Arteris Inc. IPO risks, more so in the overheated IPO market.