Quantinuum, the quantum computing subsidiary of industrial conglomerate Honeywell, is planning an initial public offering in the U.S. This is set to increase competitive pressure in the industry.
Investor interest in quantum computing is steadily rising
• Quantinuum plans IPO
• Honeywell controls the quantum computing company
Quantinuum, which is majority-owned by Honeywell, plans to file a draft registration statement on Form S-1 with the Securities and Exchange Commission (SEC). Honeywell announced this in a press release on Wednesday. According to the release, the company plans to file the draft registration statement for the planned initial public offering of Quantinuum common stock on a confidential basis—the number of shares to be offered and the price range for the planned offering have not yet been determined.
As the Börsen-Zeitung noted, it is not unusual in the U.S. to file such a non-public prospectus. Technology startups, in particular, tend to keep corporate information under wraps until all regulatory hurdles have been cleared due to fierce competition.
Growing Competitive Pressure
An IPO would bring in additional capital for further development and further solidify Quantinuum’s market position. However, it was noted that the offering is subject to market and other conditions, as well as the completion of the SEC’s review process. For competitors such as D-Wave Quantum, however, this development means that competition in this future-oriented market is intensifying.
NVIDIA Among the Investors
The timing of the planned IPO should come as no surprise, as quantum computing is increasingly drawing the attention of investors. This technology operates at the subatomic level and aims to solve problems that are too complex for today’s classical computers. Quantum computers are said to compute tens of times faster than conventional computers.
Quantinuum is a heavyweight in the industry. Last September, Quantinuum raised $600 million from investors in a funding round and was valued at $10 billion in that context. Among the investors was the venture capital arm of AI high-flyer NVIDIA.
Here’s how Honeywell and D-Wave shares reacted
Honeywell shares, listed on the NYSE, initially benefited from the news. On Wednesday, the stock ultimately rose by 1.31 percent to $213.04. In premarket trading, the share price is up slightly by 0.14 percent to $213.33.
Investors in D-Wave remained unfazed. The stock climbed 4.61 percent on Wednesday and closed at $30.15. In pre-market trading, it is currently up 0.36 percent to $30.26.
Editorial team at finanzen.net
