CoreWeave IPO: Nvidia-Backed Data Center Company Prices IPO Below Earlier Range But Retail Calls It Fair

Artificial intelligence (AI) hyperscaler CoreWeave, Inc. (CRWV) priced its much-awaited initial public offering (IPO) below the previously estimated price range, underlining the volatile market conditions.

The stock market has been on a volatile ride since mid-February as President Donald Trump’s tariff policy has dented consumer and business sentiment. 

Livingston, New Jersey-based CoreWeave said it has priced its IPO of 37.5 million shares of its Class A common stock at $40 per share, compared to the $45-$55 range it flagged in its amended prospectus.  

CoreWeave will sell 36.59 million shares and existing shareholders will offload 910,000 shares. The company clarified that it will not receive any proceeds from the share sales by selling stockholders.

The size of the offering was also reduced from the originally planned 49 million shares. 

Based on the IPO price, the company will likely collect gross proceeds of $1.5 billion, giving it a valuation of about $19 billion based on the 473.48 million shares outstanding. The valuation could be higher when calculated on a fully diluted basis.

This is the biggest tech offering since 2021, a CNBC report said.

CoreWeave provides a cloud platform of software powering AI, and since 2017, the company has operated data centers across the U.S. and Europe. It started off as a crypto mining firm before pivoting to data centers. 

The shares will begin trading on the Nasdaq on Friday under the ticker symbol “CRWV.”  The company expects the offering to close on March 31.

CoreWeave has given the underwriters a 30-day option to purchase an additional 5.625 million shares to cover over allotments, if any.

On Stocktwits, CoreWeave stock's retail following has grown by a whopping 582% over the past seven days to over 2,250.

Retail sentiment toward CoreWeave on the platform remains ‘bullish’ (65/100) and the message volume on the stream is ‘extremely high.’

CRWV sentiment and message volume March 27, as of 11:49 pm ET | Source: Stocktwits

A watcher said the $40 IPO price seems fair. They opined that CoreWeave has the backing and support to become the cog of the industry.

Another user premised his bullish stance on increasing demand for computing power, which the company sells, and the backing of mega-caps such as Nvidia, Cisco and Microsoft. They also said Wall Street is interested in seeing the IPO succeed so that it can open the door for many more.

A Bloomberg report said Nvidia, an existing CoreWeave shareholder, anchored the share sales with a $250 million order. 

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