By Arasu Kannagi Basil
May 8 (Reuters) – Industrial giant Honeywell’s Quantinuum publicly filed its paperwork for a U.S. initial public offering on Friday, moving the quantum computing company closer to a stock market listing.
The IPO market has made a comeback in recent weeks after a brief lull in March as pent-up demand for new listings and less uncertainty around the U.S.-Israeli war on Iran encourage issuers to move ahead with their IPO plans.
The Broomfield, Colorado-based company reported a net loss of $192.6 million on revenue of $30.9 million in the year ended December 31, compared with a net loss of $144.1 million on revenue of $23 million a year earlier.
“Pursing an IPO is always the first best choice to raising money, even for high-risk deals around quantum. Given that the U.S. IPO window is open and the market has been endorsing firms linked to quantum so much, the strong appeal to even traditional IPO investors comes at no surprise,” IPOX CEO Josef Schuster told Reuters.
Quantinuum was formed in 2021 by combining Honeywell’s quantum computing division and Cambridge Quantum. The firm has invested more than $2 billion in research and development over the last decade and is currently in the early stages of commercial growth.
Majority owned by Honeywell, Quantinuum makes quantum computers that are capable of solving complex problems that would take classical computers thousands of years or more.
“Customer deployments across commercial enterprises and governments already point to the scale of the opportunity ahead for Quantinuum, one that has the potential to be as impactful as AI promises to be, if not greater,” CEO Rajeeb Hazra said in a letter.
Quantinuum, which plans to sell new shares in the offering, last year raised about $600 million from investors including Nvidia’s venture capital arm at a $10 billion pre-money valuation.
J.P. Morgan and Morgan Stanley are the joint lead active book-running managers. Quantinuum will list on the Nasdaq under the symbol “QNT.”
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Tasim Zahid)
Comments