Shares in Alphawave sunk as much as 20% in early trade after the London-listed business priced its $150m convertible bond raise.

The Bonds will be issued at par and will carry a coupon of 3.75% per annum payable semi-annually in arrear in equal instalments in March and September of each year, commencing on 18 March 2025 until maturity in 2030.

Alphawave said it “plans to use the proceeds of the bonds to finance its ongoing growth plans, in particular investment in research & development, capital expenditures and other general corporate purposes – and may also include repayment of debt obligations.”

In September, Alphawave cut its full-year revenue from the previous range of $345m to $365m down to $310 to $330m, which it put down to “the merger of two large AI customers in Korea that resulted in the consolidation of development programmes already in progress”.

But the firm said bookings “remain strong” with total bookings up 20% compared to this time last year.

The Leeds-based business posted sales of $91m in the first six months of the year, down by 51% compared to last year, while losses after tax more than quadrupled to $40m and the company’s debt climbed 42% to $142m.

Aphawave put the sales fall down to “an expected strategic change in business mix including revenue from IP licences and silicon, and a significant reduction of legacy China business.” The company said its lower earnings was due to R&D investment in chiplets and new Silicon connectivity products, which would “ramp up production” in 2025.

Founded in 2017, Alphawave has operations in Toronto and London, with a global footprint in China, Europe and Korea. Founded in 2017, the company has more than 800 employees worldwide.

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