Silvaco's initial public offering (IPO) raised $114 million, and the issue price was set at the top of the market pricing range. The company's stock price rose 4.2% on the first day of listing.
Zhitong Finance learned that Silvaco Group (SVCO.US) raised an initial public offering (IPO) of US$114 million, and the issue price was set at the top of the market pricing range. The company's stock price rose 4.2% on the first day of listing, and rose nearly 14% during the intraday period. Shares of the chip design software company closed at $19.80 a share on Thursday. The company's stock listing price is $17 to $19 per share. According to the tradable shares listed in Silvaco's filings with the US Securities and Exchange Commission, the transaction brought Silvaco's market capitalization to $565 million.
At the time of the company's listing, the recovery in the US IPO market was expanding beyond well-known companies such as Reddit (RDDT.US) that have been waiting for listing opportunities. Babak Taheri, CEO of Silvaco, said: “This is the first time the market is open to small cap companies, and we want the first opportunity to enter because we have a feeling that the market will begin to pick up further as September and October approach.”
According to the documents, the company was founded in 1984 and is headquartered in Santa Clara, California, to produce electronic design automation software for semiconductor and photonic companies. Silvaco also provides intellectual property rights to the software on the chip.
According to the documents, Silvaco's revenue in 2023 was US$54.2 million, with a net loss of about US$316,000, while revenue for the same period last year was US$46.5 million, with a net loss of about US$3.9 million. In 2022 and 2023, Asian customers accounted for approximately 60% of the company's revenue.
After the IPO, Chairman of the Board Katherine Ngai-Pesic and members of her family will hold majority shareholders' voting rights. The offering was led by Jefferies Financial Group Inc. and TD Cowen, and shares were traded on the NASDAQ Global Select Market.