CoreWeave Misfire Extends IPO Malaise Instead of Ending It
When the dust settled, the company narrowly avoided becoming No. 5 out of the year’s 10 largest US IPOs to leave investors in the red.
Photographer: Michael Nagle/BloombergThe market for US initial public offerings suffered another body blow this week when one of the most-anticipated deals of the year was a dud — extending a series of deals that have missed the mark of sky-high expectations. And things weren’t any better in its trading debut on Friday.
CoreWeave Inc., the cloud-computing provider that was targeting a $4 billion blockbuster IPO just weeks ago, raised $1.5 billion in a deal that was walked down by 40% from the midpoint of the range its bankers pitched to investors last week. The company ended Friday with a diluted valuation of $23 billion, roughly in line with its last funding round but short by a third of its initial target of more than $35 billion.