Alphawave IPO: how to buy and short Alphawave shares

How to trade Alphawave shares

You can trade Alphawave shares as soon as the company lists. Since it’s a UK initial public offering (IPO), you’ll be able to take positions on the company’s shares straight away on the day of listing from 8am (UK time).

With us, you’ll use leveraged derivatives such as spread bets and CFDs to go long or short on the Alphawave share price. When trading, you’ll open a position without owning the underlying shares. You can:

• ‘Buy’ (or go long) if you think that the Alphawave share price will rise
• ‘Sell’ (or go short) if you think that the Alphawave share price will fall

It’s important to remember that trading on leverage can increase both your profits and losses – so managing your risk is vital.

Find out more about how leverage impacts your trading

How to invest in Alphawave shares

When you invest in Alphawave, you’re taking ownership of physical shares. You’ll profit if you sell your shares for more than what you paid when to buy them. But, if you sell your shares for less than what you bought them for, you’ll take a loss.

To own physical Alphawave shares, you’ll need to commit the full value of your position upfront because leverage isn’t available for investments. This means that your initial outlay will be higher compared to trading, but your risk will be capped at the initial cost of your position.

Remember that your investments can rise or fall in value, meaning that you may get back less than you invested. For example, if you’d opened a ‘buy’ position of £10 for one share and the price falls to £8 when you sell it, you’d lose £2. But if the price rises to £12 when you sell, you’d make a profit of £2.

With us, you can invest in Alphawave shares from as little as £3 commission. You qualify for this if you opened at least three positions on your share dealing account in the previous month.

Here’s how our commission rates compare against those of our competitors:

Alphawave shares: the basics

Alphawave is set to list on the main market of the London Stock Exchange (LSE), with the intention to raise approximately $500 million (USD) in its IPO.

While the company has not released specific information about the IPO date and share price as yet, it has said that it plans to offer new shares as well as existing ones – with a targeted valuation of around $4.5 billion (USD).

Barclays and JPMorgan are coordinating the listing, while BMO Capital Markets has been appointed as the bookmaker.

Alphawave: a brief history

Alphawave was founded in 2017, but since then the company has become a market leader in its sector, with a global customer base. Alphawave is a semiconductor specialist – it develops technology that services connectivity, ensuring high performance through faster and more reliable data transfers.

The company has been profitable since 2018 – its first full year of operation. Between 2019 and 2020, Alphawave’s year over year revenues increased by more than 200%. It attributed this success to the ongoing delivery of its high-quality services and solutions.

Following a partnership announcement with Oxford-based Ensilica in March 2021, the company announced its intention to list in London. Alphawave also plans to set up its research and development headquarters in Cambridge.

What is Alphawave’s business model?

Alphawave’s business model is based on licensing its high-tech data transmission connectivity solutions, for which it receives a royalty for every chip that’s produced. Royalties typically start after 18 to 24 months of entering into a licence agreement. Customers pay subscription fees to access the company’s products and engineering fees for tailoring of technology to their unique requirements.

Alphawave chips can be used in computer systems, phone networks and low-power data centers. Furthermore, the technological applications of Alphawave’s products span across 5G wireless infrastructure, artificial intelligence (AI) and self-driving vehicles.

Alphawave share price: how to analyse Alphawave shares

You can analyse the Alphawave share price using both technical and fundamental analysis once the company has gone public.

• Technical analysis looks at chart patterns, technical indicators and historical price action to attempt to predict future price movements
• Fundamental analysis looks at the fundamentals of a company, including its net revenue or profit and loss statements as well as wider macroeconomic factors

It’s vital that you use both these forms of analysis in a comprehensive assessment of the Alphawave share price – it can empower you to be more informed before making trading and investment decisions.

Interested in analysis? Find out more at IG Academy