Quantum computing’s biggest IPO started with a pop and ended with a fizzle.
Quantinuum, the Honeywell-backed company that builds quantum computing hardware and software, made its Nasdaq debut Thursday, opening at $68 per share, raising $1.68 billion at a $15.6 billion valuation. But despite momentum and initial enthusiasm, the company closed the day just a hair above its $60 IPO price.
It stands in stark contrast to the blockbuster listings that have so far defined this year’s IPOs. Investors say the debut shows that even the buzziest deep-tech companies still face growing pains.
“It’s hard to draw too many conclusions from just one day,” said Alex Taub, principal at QED Investors, the firm that backed Quantinuum in a September fundraising round. “Deep tech comes with a lot of volatility, but removing that volatility and [legitimizing] this in a real public market space isn’t the worst thing either. It’s a kind of stamp of approval for an emerging technology.”
Just weeks ago, AI chipmaker Cerebras opened on May 14 almost 70% above its IPO price.
Thursday’s listing caps a busy stretch for quantum computing companies making public exits. Over the past year, several such startups have gone public via SPAC, including Infleqtion, IQM and Pasqal. Quantinuum’s traditional IPO is one of the largest the sector has seen, according to PitchBook data.
In May, the Trump administration signed nine letters of intent to provide more than $2 billion in funding for US quantum computing companies. Quantinuum will receive $100 million of that investment.
In 2021, Quantinuum was formed when Honeywell merged its quantum computing unit with another company, Cambridge Quantum. The company utilizes a “full stack” approach, building both quantum computing hardware and accompanying software. Honeywell has retained around 49% of Quantinuum’s voting rights after the offering, according to the company’s S-1 filing.
NVentures, the VC arm of chipmaker Nvidia, alongside Serendipity Capital and Quanta Computer, were among more recent investors. Quantinuum last raised $600 million at a $10 billion valuation in September. QED Investors, which traditionally backs fintech companies, joined the round.
According to Taub, the rationale behind QED’s investment was the application of quantum technologies within large financial institutions.
“We’re trying to chase the puck in terms of where we see fintech going, not today, but five to 10 years out. There’s a lot of opportunity for financial services players here to execute,” he said.
QED did not sell its shares in the IPO, Taub said, declining to share whether the firm plans to hold onto its stake once the six-month lockup period expires.
