Nscale recently obtained $3.4 billion in pre-IPO financing as the UK-based AI infrastructure company makes preparations for a U.S. public listing.
Bloomberg reported Third Point led the convertible note offering, which also drew backing from Nvidia, Apollo, Citadel, Hudson Bay Capital, Abu Dhabi Investment Council and 8090 Industries.
Earlier this month rumours emerged Nscale was looking to raise up to $3.5 billion before the flotation.
Nscale signed the subscription agreement on 15 September, three days before filing it with the U.S. Securities and Exchange Commission. The deal required the company to raise at least $3.1 billion.
The financing package agreed comprises a $2.4 billion tranche and a separate $1 billion commitment from Nvidia. The Nvidia investment is expected to close around 16 November. The notes will convert into ordinary shares when the IPO completes, while Nvidia will receive non-voting stock.
Bloomberg reported Goldman Sachs acted as placement agent. The conversion price is expected to be set at a double-digit discount to the IPO price. The discount will increase until Nscale reaches a $30 billion valuation, then remain fixed.
Earlier this month, the infrastructure company submitted paperwork to list on the New York Stock Exchange under the ticker NSCL. Reports said it is seeking a valuation of up to $35 billion.
Goldman Sachs, JPMorgan Chase and Morgan Stanley are the lead bookrunners for the IPO, with another 19 banks involved.
Source: Mobile World Live
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