March 28 - CoreWeave has scaled back the size of its U.S. initial public offering, pricing shares below the projected range.
The Nvidia (NVDA, Financial)-backed cloud services firm now intends to sell 37.5 million shares at $40 each, reducing its offering by 23.5% from initial plans. The revised pricing falls below the earlier target range of $47 to $55 per share. The company will issue 36.6 million shares, while existing stakeholders will offload 910,000 shares.
Nvidia is set to anchor the IPO with a $250 million purchase at the final offering price. The adjusted sale is expected to generate around $1.5 billion, valuing CoreWeave at approximately $23 billion on a fully diluted basis.
Investor reception has been weaker than anticipated, as concerns grow over CoreWeave's reliance on Microsoft (MSFT, Financial), capital-intensive operations, and financial sustainability. The company, which leases its 32 data centers, has an $8 billion debt load and $2.6 billion in operating lease liabilities.
Morgan Stanley (MS, Financial), J.P. Morgan (JPM, Financial), and Goldman Sachs (GS, Financial) are leading the IPO.
