CoreWeave, the AI tech specialist backed by none other than Nvidia NASDAQ:NVDA, has filed this week for an IPO. The highly anticipated listing has seen its topline revenue up 700% in its most recently reported year.
There are concerns in the market about the fact that most of the company’s revenues come from just two customers. Losses are also up, which is another red flag for investors planning to subscribe.
At this stage CoreWeave has not stated how much money it plans to raise. Sources close to the deal have said the company wants to raise around USD 35 billion. The company currently has 250,000 GPUs approximately distributed across 32 data centres.
Nvidia currently owns around 1.21% of the stock according to CoreWeave’s S1 filing, while the three founders of the company control around 83% of the voting power thanks to a specific class of voting shares. The former commodity traders have each sold around USD 150 million on stock ahead of the IPO.
CoreWeave is also important to Wall Street because it represents the first major tech IPO of the Trump administration. There has been a dearth of big tech companies coming to the market, with many founders reluctant to take their unicorns public and venture capital companies turning to the secondary market rather than list their portfolio positions.
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Etihad Airways
Middle East airline Etihad is understood to be poised to announce an IPO this week or next, according to sources close to the company. This represents the first major listing by an airline in the Gulf region for more than 20 years so is bound to be greeted with much excitement by investors in the area as well as further afield.
Roughly 20% of Etihad is expected to be up for grabs as it aims to fund further expansion. The airline is currently owned by ADQ, which is Abu Dhabi’s massive sovereign wealth fund.
The deal looks like it will consist of 2.7 billion primary shares. Timing is good, with Etihad reporting a net profit of USD 476 million, triple that of the previous year. Part of its growth has been fuelled by the increasing importance of Abu Dhabi as a travel and financial services hub since the end of the pandemic, and especially since the start of the war in Ukraine.
Etihad has said that it is planning to increase its global reach, aiming to get out to 125 destinations by 2030. It has also opened a brand new terminal which is helping Abu Dhabi to triple its passenger capacity to more than 45 million visitors.
Mixue [HKG:2097]
Shares in Mixue, the Chinese bubble tea maker, had a fantastic debut in Hong Kong this week. The stock was massively over-subscribed, to the tune of 5,200 times for local investors, and 35 times for international investors.
Due to demand, Mixue allocated further shares to the Hong Kong listing. Bubble tea is big business across East Asia, and increasingly elsewhere. The Mixue listing followed the successful listing of Guming [HKG:1364], another bubble tea chain with a massive presence in China.
Shares in Mixue were up 40% on the listing and currently trade at just over HKD 290. The original offer price was HKD 202.5. The company had originally offered investors 17.06m shares at the IPO and raised over HKD 3.45 billion.
The IPO was supported by five cornerstone investors in Hong Kong, including M&G Investments, HongShan Growth and the Long-Z Fund from Meituan.
