Cerebras Systems Sets IPO Price Guidance Above Initial Range Amid Strong Demand

Cerebras Systems Inc. has informed potential investors that it anticipates pricing its initial public offering above the upper limit of its marketed price range, sources with knowledge of the situation have indicated. This move reflects surging investor demand for the artificial intelligence chipmaker's shares.

The company is offering 30 million shares in the IPO, with a price range of $150 to $160 per share. This follows an upward revision of both the price range and the share count on Monday. At the top of this range, the offering would raise approximately $4.8 billion, positioning it to become the largest IPO of the year, excluding deals that include private placements.

When including the overallotment option, or "greenshoe," Cerebras's IPO could potentially approach the scale of Arm Holdings Plc's $5.23 billion offering in 2023, which stands as the largest semiconductor listing on record in the United States, according to data from Bloomberg.

The sources cautioned that discussions are still ongoing and the final details of the offering are subject to change. They requested anonymity as the information is not yet public. A representative for Cerebras declined to provide any comment on the matter.

Demand for the IPO has been robust, with orders reportedly exceeding the available shares by more than twenty times, according to individuals familiar with the book-building process. The final pricing for the offering is scheduled for May 13, based on the deal terms reviewed by Bloomberg News.