Astera Labs Inc. and its investors have successfully completed their initial public offering, raising $713 million for the semiconductor connectivity company. The shares were priced above the marketed range, reflecting strong demand for investments in artificial intelligence. Astera sold 19. 8 million shares at $36 each, valuing the company at approximately $5. 5 billion. Including stock options and restricted share units, the fully diluted value of the company is estimated to be closer to $6 billion. Astera's IPO is one of the largest this year, preceding the high-profile share sale by Reddit Inc.

Morgan Stanley and JPMorgan Chase & Co. are leading the IPO, with several other firms acting as co-managers. Astera specializes in developing semiconductor-based connectivity solutions to facilitate AI and machine learning in the cloud. The company has shown improvements in its financials, reducing its net loss to $26 million in 2023. Intel Corp. 's venture arm is among the company's investors, while Sutter Hill Ventures is its largest shareholder. Astera's co-founders, Jitendra Mohan and Sanjay Gajendra, hold significant stakes in the company as well.