Alphawave IP Group – the Toronto-based company, which designs semiconductor technology has set a price range for its planned London IPO, as it was announced by JPMorgan (underwriter) on May 6, 2021.
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- Detailed instructions how to participate in Alphawave (pre-IPO, offering price) see below👇
What is an IPO and how it works
IPO is a process of offering shares of a private corporation to the public in a new stock issuance. Why go public? The primary benefit of going public is easier access to capital.
To go public, a company must have a track record of growth and other favorable results and hire an investment bank (Barclays Plc and JPMorgan Chase & Co. are joint global coordinators, while BMO Capital Markets is joint bookrunner.) to come in and underwrite the IPO. The underwriters also performed due diligence and verified financial information and business model.
Once the paperwork done, the company sells the stock to institutional investors. When the initial block of shares has been sold, the company with underwriters' help sets an initial price and date for the stock to begin trading on a stock exchange.
Company Profile and Financial Indicators before Alphawave IPO
Alphawave's IPO, valued at $4.5B, is one of the most anticipated in the tech sector. The Canadian chipmaker founded in 2017 is now planning to move its research and development headquarters to Cambridge. It is undoubtedly a rare precedent for a North American company to relocate across the Atlantic.
Among the areas the firm is focusing on are data centres, wireless 5G infrastructure, artificial intelligence and autonomous vehicles. The company's competitors include both industry giants (Arm, CSR and Microelectronics) and smaller players such as AI chipmaker Graphcore.
Unlike many other technology companies, Alphawave has been profitable since its first year, thanks to orders worth more than $200 million - including from giants such as Samsung and TSMC. The company's annual revenue for 2020 was $32.8M, with a combined annual growth rate of 161% since May 2018. Operating profit reached $17.5M.
The company expects the total target market for its current products to grow to $1.5B by 2025 (compared to $500M in 2020) and it could exceed $50B by 2024 for future products.
The semiconductor industry is developing very actively, and many other markets depend on it. Currently, automotive and some other industries are suffering from chip shortage. Therefore, the demand for semiconductors will be still high for the next few years.
The semiconductor market size will amount to $726.73B by 2027, against $513.08B in 2019, Marketwatch reports. This means Alphawave has all chances to actively grow.
How to Buy Alphawave Stocks Before the IPO (Offering Price)
In the past, IPOs as highly profitable investments were available only to the privileged customers of the leading brokerage firms and it was challenging for retail investors to gain access. You couldn't buy shares paying the price set by the company and you had to wait until the shares actually start trading on the public stock market at whatever stock price supply and demand allows.
Technologies and marketplaces changed the rules of the game, now regular investors can get pre-IPO shares. To participate in Alphawave IPO you need to use an IPO investing app like Freedom Finance (NASDAQ: FRHC), TD Ameritrade or Fidelity. They give its customers access to IPOs and secondary offerings through their existing brokerage account. Also you can buy Alphawave shares when the company goes public via a commission-free trading app like Webull.
🚨 Detailed Instructions How to Participate in the Alphawave IPO before public trading:
Below we share the instruction how to participate in the approaching Alphawave IPO using Freedom Finance (Freedom24 platform). This marketplace is chosen as an example because Alphawave is already listed there.
* Freedom Finance services are NOT available to US citizens and residents.
- Apply for a Freedom Finance account — you need to prepare your identity document and a document confirming the address of residence (utility bill). The verification process is very fast, it will take 2 minutes to create your account.
- Deposit your account — to participate in an IPO, your account must have available funds in the amount you send IPO application for.
- 💡 Tip: It's recommended to deposit your account in advance. Often the exact IPO date is undefined until the last day. You may have a short notice for participation and account deposits also takes time for processing. Also, sometimes Freedom sends last-minute IPO offer when you have 2 hours to participate.
- Submit a request to participate in the IPO — when applications are open select Alphawave and click Participate in the IPO > input the amount you want to invest > Send your application. Note: Before the book closing, a request can be withdrawn. At the time of the book closing, 1 day before the start of the exchange trading, the specified amount will be blocked on the account.
- Wait for allocation — The actual number of stocks purchased during an IPO depends on supply and demand. The higher underwriter reserves the right to partial execution of collective applications. So if the demand is high you may get less than you applied for. Of course, you will only pay for the shares purchased. The rest of the funds will be returned to your account.
- Start of trading — With the beginning of the public trading on the stock exchange, the purchased shares will appear on the account and a lock-up period will start — a 93-day period of prohibition on sale. You can’t sell stocks, but you can track their current value and growth indicators in your personal member area and a trading terminal.
- Closing your trade — At the end of the 93 days lock-up period, you will be able to manage your stocks at your discretion — leave in the portfolio or sell and withdraw money or transfer the stocks to another depository/ broker in your name. This can be done in your account by clicking the ‘Sell’ button next to the name of the security. In this case, a commission of 0.5% of the amount of the sale transaction is charged.
Is investing in IPOs profitable?
Not always. The average return at the end of the lock-up period is 72%, past IPOs data.
When is the Alphawave IPO date?
Alphawave's IPO date is not defined yet. We will update when the exact Alphawave date IPO is known – if you want to get notified please subscribe for updates here.
What is Alphawave IPO price range?
375 pence to 430 pence per share.
How to Invest in Alphawave after the IPO date (opening price)?
After the IPO you can buy Alphawave stocks via Freedom24 or Webull on the first trading day.
In what currency Alphawave IPO and post-IPO shares will be traded?
The Alphawave IPO and stock trading currency will be GBP.
If you have funds in another currency the cheapest way to convert your currency is to use the mid-market rate (that’s the one you’ll find on Google) which can be done via a fintech service like Wise. Banks may add hidden markups to their exchange rates - charging you more without your knowledge. And if they have a fee, they charge you twice. Wise never hides fees in the exchange rate.
What is the Alphawave (stock symbol)
The stock ticker for Alphawave will be
Sources used: Reuters, Bloomberg
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