AI infrastructure firm Accelevation targets up to $5.4 billion valuation in US IPO

By Pragyan Kalita

Sept 22 (Reuters) - Accelevation ‌is targeting a ​valuation ​of up to $5.37 billion in its US initial public offering, the data center infrastructure company said on Tuesday, joining ‌a wave of firms tapping investor demand for AI-linked ⁠stocks.

The Miamisburg, Ohio-based Accelevation and some selling shareholders are aiming to raise up to $720 ‌million by offering 30 million ‌shares priced between $20 and $24.

The fall IPO season began tentatively amid worries over surging bond yields and the first US interest-rate hike ​in three years, but a pipeline of big-name issuers points to a pickup in activity.

Nvidia-backed AI cloud firm Nscale filed for ⁠an IPO this month, while smart-ring maker Oura launched its roadshow this week. AI startup Anthropic ​is preparing for a potential blockbuster listing later this year.

The market is moving beyond treating AI infrastructure as ​a single hot theme and should become ‌more selective as options grow, said Kat Liu, vice president at research firm IPOX.

“Investors are likely to ⁠pay more attention to where a company sits in the value chain, the quality of its backlog and how effectively strong demand translates into revenue, ⁠margins and cash flow.”

Founded in 2017, Accelevation designs, makes and installs power distribution, cooling ​and modular infrastructure for data center customers.

Demand for such equipment has surged as tech companies spend heavily to build the computing capacity needed to develop and ‌run AI models. Forgent Power Solutions , which makes electrical equipment for data centers and power grids, has ‌gained about 40% since going public in February.

Morgan Stanley, J.P. Morgan, Goldman ⁠Sachs and BofA Securities, among ‌others, are the underwriters ​for Accelevation's offering. It will list on Nasdaq under the symbol “ACCV."

(Reporting by Pragyan Kalita in Bengaluru; Editing by ‌Sahal Muhammed)

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