Asian Hedge Fund Manager, Long Short Equity, Macro

David Mudd

Cross Asset Strategy

<ul>
<li>DC company share prices are rolling over, foreshadowing increasing pressure on their hyperscaler customers.  Since the July swoon in semiconductor stocks, the DC sector has underperformed both hyperscalers and semiconductors.</li>
<li>DC players face strong headwinds on multiple fronts, including high leverage/circular financing, supply chain delays, public opposition, and questions about aggressive forecasts of future compute demand.</li>
<li>Leverage is the most prominent risk in the DC sector, with questions looming about completion dates and customers' ability to meet their contracted offtake agreements.</li>
</ul>


DC company share prices are rolling over, foreshadowing increasing pressure on their hyperscaler customers.  Since the July swoon in semiconductor stocks, the DC sector has underperformed both hyperscalers and semiconductors.
DC players face strong headwinds on multiple fronts, including high leverage/circular financing, supply chain delays, public opposition, and questions about aggressive forecasts of future compute demand.
Leverage is the most prominent risk in the DC sector, with questions looming about completion dates and customers' ability to meet their contracted offtake agreements.


DATA CENTER SECTOR: From the Tip of the Spear to Canary in the Coal Mine

US IPOs and Secondary Offerings, IPO Boutique

IPO Boutique

US IPOs and Secondary Offerings

For more than 20 years, we have been providing research, analysis, commentary and ratings on US Equity Capital Markets to institutional investors (US IPOs and Secondary Offerings). Our vast network of contacts across the Equity Capital Markets and attention-to-detail sets us apart from our competitors.

Since 2012, we have achieved a successful hit rating on 89% of Buy-rated IPOs. The collective “Buy” ratings averaged a first trade of 16.3% above issue.Our Neutral Rated Deals averaged just 2% above the issue price at first trade.

Our written research includes pre-IPO notes before the deal is launched, follow-up analysis once the deal is live and post-listing trading analysis as well.

In addition, we provide a high-touch premium desk access which includes analyst access, as well as real time insights on US IPOs as well as secondary offerings.

IPOs and Secondary Offerings

Equity Capital Markets

<ul>
<li>CoreWeave priced a downsized IPO — 37.5 million shares at $40.00 — well below the marketed $47–$55 range.</li>
<li>He debut was muted (opened at ~$39 and closed at the $40 IPO price), but the stock ripped higher in the weeks that followed and peaked at $187 in June.</li>
<li>By late October CoreWeave ranked among the top performing 2025 IPOs, sitting behind Circle Internet Group and Karman Holdings in aftermarket returns.</li>
</ul>


CoreWeave priced a downsized IPO — 37.5 million shares at $40.00 — well below the marketed $47–$55 range.
He debut was muted (opened at ~$39 and closed at the $40 IPO price), but the stock ripped higher in the weeks that followed and peaked at $187 in June.
By late October CoreWeave ranked among the top performing 2025 IPOs, sitting behind Circle Internet Group and Karman Holdings in aftermarket returns.


CoreWeave Inc (CRWV): Six Month Summary: AI Hyperscaler that Re-Priced the IPO Playbook

<ul>
<li>Fermi set terms for its IPO on Wednesday afternoon and will offer 25 million shares at $18-$22 and to debut on Wednesday, 10/1.</li>
<li>One of Fermi's founders is former energy sector director, Rick Perry.</li>
<li>The underwriters have reserved for sale at the initial public offering price up to 5% of the shares of common stock for sale through a directed share program.</li>
</ul>


Fermi set terms for its IPO on Wednesday afternoon and will offer 25 million shares at $18-$22 and to debut on Wednesday, 10/1.
One of Fermi's founders is former energy sector director, Rick Perry.
The underwriters have reserved for sale at the initial public offering price up to 5% of the shares of common stock for sale through a directed share program.


Fermi Inc. (FRMI): Pre-Revenue Data Center REIT Sets Terms Seeking $13.2b Valuation

<ul>
<li>Their mission is to deliver up to 11 gigawatts on-demand power directly to the world’s most compute-intensive businesses with 1 GW of power projected to be online by 2026.</li>
<li>A pair of hyperscalers have gone public and have been well-received by the market: CoreWeave (CRWV US) and Whitefiber (WYFI US).</li>
<li>The company has no revenues and was formed in January meaning investors will have to exercise extreme patience with this developmental company. </li>
</ul>


Their mission is to deliver up to 11 gigawatts on-demand power directly to the world’s most compute-intensive businesses with 1 GW of power projected to be online by 2026.
A pair of hyperscalers have gone public and have been well-received by the market: CoreWeave (CRWV US) and Whitefiber (WYFI US).
The company has no revenues and was formed in January meaning investors will have to exercise extreme patience with this developmental company. 


Fermi Inc. (FRMI): Peeking at the IPO Prospectus of a Hyperscaler Development Company

<ul>
<li>Shares opened with a 47.3% gain and quickly surged to $31.50 before settling into a stable trading range for most of the session.</li>
<li>The price range itself had been lifted from the initial $15–$17, underscoring the strength of investor demand.</li>
<li>The order book ultimately finished 20-times oversubscribed, driven by sizable long-only conversions and strong interest from healthcare-dedicated funds.</li>
</ul>


Shares opened with a 47.3% gain and quickly surged to $31.50 before settling into a stable trading range for most of the session.
The price range itself had been lifted from the initial $15–$17, underscoring the strength of investor demand.
The order book ultimately finished 20-times oversubscribed, driven by sizable long-only conversions and strong interest from healthcare-dedicated funds.


HeartFlow Inc. (HTFL): Healthcare AI IPO Opens Strong, Trades Steady on Heavy Demand

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Whitefiber (WYFI US)

DATA CENTER SECTOR: From the Tip of the Spear to Canary in the Coal Mine

The sudden plunge in demand for an Nvidia-backed data center company’s initial public offering is revealing fresh cracks in the AI funding boom....

David Mudd

CoreWeave Inc (CRWV): Six Month Summary: AI Hyperscaler that Re-Priced the IPO Playbook

CoreWeave's IPO initially priced below expectations but saw significant gains in the following weeks, becoming one of the top performing 2025 IPOs.

IPO Boutique

Fermi Inc. (FRMI): Pre-Revenue Data Center REIT Sets Terms Seeking $13.2b Valuation

Fermi, co-founded by Rick Perry, sets terms for IPO with 25 million shares priced at $18-$22, debuting on 10/1. Underwriters reserve 5% for...

IPO Boutique

Fermi Inc. (FRMI): Peeking at the IPO Prospectus of a Hyperscaler Development Company

New company aims to provide 11 GW of on-demand power to compute-intensive businesses, with 1 GW projected by 2026. The IPO is anticipated in October.

IPO Boutique

HeartFlow Inc. (HTFL): Healthcare AI IPO Opens Strong, Trades Steady on Heavy Demand

Stock of company X opened at 47.3% gain, reaching $31.50, showing strong investor demand with a 20-times oversubscribed order book and interest...

IPO Boutique

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)

DATA CENTER SECTOR: From the Tip of the Spear to Canary in the Coal Mine

The sudden plunge in demand for an Nvidia-backed data center company’s initial public offering is revealing fresh cracks in the AI funding boom....

David Mudd

CoreWeave Inc (CRWV): Six Month Summary: AI Hyperscaler that Re-Priced the IPO Playbook

​CoreWeave's IPO initially priced below expectations but saw significant gains in the following weeks, becoming one of the top performing 2025 IPOs.

IPO Boutique

Fermi Inc. (FRMI): Pre-Revenue Data Center REIT Sets Terms Seeking $13.2b Valuation

​Fermi, co-founded by Rick Perry, sets terms for IPO with 25 million shares priced at $18-$22, debuting on 10/1. Underwriters reserve 5% for...

IPO Boutique

Fermi Inc. (FRMI): Peeking at the IPO Prospectus of a Hyperscaler Development Company

​New company aims to provide 11 GW of on-demand power to compute-intensive businesses, with 1 GW projected by 2026. The IPO is anticipated in October.

IPO Boutique

HeartFlow Inc. (HTFL): Healthcare AI IPO Opens Strong, Trades Steady on Heavy Demand

​Stock of company X opened at 47.3% gain, reaching $31.50, showing strong investor demand with a 20-times oversubscribed order book and interest...

IPO Boutique

CoreWeave's IPO initially priced below expectations but saw significant gains in the following weeks, becoming one of the top performing 2025 IPOs.

Fermi, co-founded by Rick Perry, sets terms for IPO with 25 million shares priced at $18-$22, debuting on 10/1. Underwriters reserve 5% for...

New company aims to provide 11 GW of on-demand power to compute-intensive businesses, with 1 GW projected by 2026. The IPO is anticipated in October.

Stock of company X opened at 47.3% gain, reaching $31.50, showing strong investor demand with a 20-times oversubscribed order book and interest...