13th May 2021 15:09
Alphawave IP Group PLC - Toronto, Ontario, Canada-based semiconductor IP company - Shares begins first day of conditional trading on the Main Market of London Stock Exchange on Thursday, with unconditional dealings starting on Tuesday.
The company had set its initial public offering price at 410 pence, expecting a GBP3.1 billion market capitalisation upon admission. On Thursday afternoon, the stock was trading at 332p down 19% from the IPO price, giving Alphawave a market value of GBP2.51 billion.
"Alphawave IP has a business model which investors understand and know can work well, thanks to the ARM Holdings' time as a FTSE 100 firm, so London still seems like a good choice for the listing. But another poor start for a high profile flotation, and one that comes so soon after Deliveroo, will inevitably be used as a stick with which to beat the London Stock Exchange and the London market more widely, amid accusations that the UK investment community doesn't 'get' technology or like entrepreneurs - when nothing could be further from the truth," says AJ Bell's Russ Mould.
"The finger-pointing will now doubtless begin, as the company, advisers, investors and onlookers try to work out why Alphawave IP's shares are sinking quite so fast, even though the global semiconductor industry seems to be booming right now and the company has a business model which looks perfect to capitalise upon demand for silicon chips over the long term as well," adds Mould.
By Arvind Bhunjun; [email protected]
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