Honeywell's Quantinuum eyes $14.3 billion valuation in upsized US IPO

June 1 (Reuters) - Honeywell’s Quantinuum is targeting a valuation of up to $14.3 billion in its upsized U.S. initial public offering, underscoring robust investor appetite around quantum computing.

 

The Broomfield, Colorado-based company is now seeking up to $1.46 billion by marketing 26.5 million shares priced between $53 and $55 apiece, it said on Monday.

 

It had earlier aimed to raise up to $1.05 billion by offering about 21.1 million shares priced between $45 and $50 apiece.

June is poised for a busy start to the IPO market as firms look to capitalize on strong market conditions ahead of SpaceX’s blockbuster listing, with seven companies spanning from defense to energy sectors set to price their offerings this week.

 

Quantum computing has drawn growing interest after recent technological breakthroughs underscored its potential to speed up tasks from drug discovery to financial modelling and cryptography.

 

Quantum computers are capable of solving complex problems faster than classical ​computers. But major technical challenges remain, including high error rates that limit practical performance.

 

Quantinuum’s revised IPO terms comes on the heels of the U.S. government unveiling plans last month to take $2 billion in equity stakes across nine quantum-computing companies. Quantinuum will receive $100 million in funding.

 

The company was formed in 2021 by combining Honeywell’s quantum computing division and ‌Cambridge ⁠Quantum. While it is in early stages of commercial growth, bookings have accelerated in recent months as the emerging technology gains traction.

 

J.P. Morgan and Morgan Stanley are joint lead active book-running managers for the Quantinuum offering.

 

Quantinuum is expected to list on the Nasdaq under the symbol "QNT" on Thursday.

 

(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shailesh Kuber)