CoreWeave Inc., a cloud-computing provider backed by Nvidia Corp., went public, raising $1.5 billion, which was 40% lower than its initial target. Don’t forget: CoreWeave’s trading debut extends IPO malaise. The IPO was considered a disappointment as shares sold for $40, below the marketed price of up to $55, and closed at $40, giving the company a market value of over $18 billion. This debut extends a series of underperforming IPOs, highlighting the fragility of the current IPO market due to market uncertainty.
The company’s initial target valuation was more than $35 billion, but it ended Friday with a diluted valuation of $23 billion. The IPO market has faced headwinds, including a recent Nasdaq drop and investor caution towards AI companies. Nvidia anchored the share sale with an order of about $250 million, and the top 15 investors took 90% of the shares. CoreWeave’s CEO stated that without Nvidia’s support, the IPO would not have closed.