7 Things to Know About the Upcoming $1.6 Billion IPO for Credo Technology Group Holding Ltd (CRDO)

January 19, 2022 4:48 PM EST
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Credo Technology Group Holding Ltd (NASDAQ: CRDO) is set to launch its U.S. IPO next week. Credo Technology Group Holding Ltd is an innovator in providing secure, high-speed connectivity solutions that deliver improved power and cost efficiency as data rates and corresponding bandwidth requirements increase exponentially throughout the data infrastructure market. Below are 7 important facts to focus on into the IPO:

1. Credo Technology Group Holding Ltd IPO Timing: Credo Technology Group Holding Ltd is expected to have its IPO on the NASDAQ on Jan 27, 2022. The stock ticker is 'CRDO'. Normally IPOs on the NASDAQ began trading between 10AM-2PM ET.

2. Credo Technology Group Holding Ltd IPO Price: The company anticipates the initial public offering price to be between $10.00 and $12.00 per share.

3. Shares Offered: The company is offering 23,383,800 ordinary shares, granting the underwriters a 30-day option to purchase up to 3,750,000 additional shares. Also, 1,616,200 ordinary shares will be offered by the selling shareholders, including a member of the company’s board of directors and senior management. There will be 144,947,064 ordinary shares (or 148,697,064 shares if the underwriters exercise their option to purchase additional shares in full) after this offering.

4. Credo Technology Group Holding Ltd IPO Valuation: A pricing at the midpoint of the range would value the company at around $1.6 billion.

5. IPO Underwriters: Goldman Sachs & Co. LLC, BofA Securities, Cowen, Mizuho Securities, Needham & Company, Stifel, Craig-Hallum, Roth Capital Partners, and Cathay Securities Corporation are acting as underwriters for the offering.

6. Important Credo Technology Group Holding Ltd Financials: During fiscal 2020 and 2021, the company generated $53.8 million and $58.7 million in total revenue, respectively. Product sales and product engineering services revenue comprised 31% and 63% of the total revenue in fiscal 2020 and 2021, respectively, and IP license and IP license engineering services revenue represented 69% and 37% of the total revenue in fiscal 2020 and 2021, respectively.

7. Credo Technology Group Holding Ltd Total Addressable Market (TAM): Within the data infrastructure ecosystem, the company targets the wired connectivity market as it relates to communication electronics, which Gartner forecasts will grow from $12 billion in 2020 to $17 billion in 2025.

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