Australian neocloud Sharon AI has launched its Initial Public Offering (IPO) on the US Nasdaq stock exchange.

Made effective as of February 17, the IPO sees Sharon AI offering 4,166,666 shares of its Class A Ordinary Common Stock at $30 per share, for total gross proceeds of approximately $125 million.

The IPO has been led by funds managed by Oaktree Capital Management, L.P., and Two Seas Capital LP - one of the largest shareholders of data center firm Core Scientific - with "significant participation" from other institutional investors.

The proceeds of the IPO, Sharon AI says, will be used to acquire additional "GPU-focused equipment," for working capital, and general corporate purposes.

The neocloud has also granted the underwriter a 45-day option to purchase up to an additional 625,000 shares of common stock at the IPO price, minus underwriting discounts and commissions.

Trading started yesterday, February 18, and is expected to close today, February 19, "subject to the satisfaction of customary closing conditions."

Lucid Capital Markets is acting as the sole book-running manager for the offering.

The preliminary prospectus for the offering details several recent moves made by Sharon AI, including the recent sale of SharonAI's stake in Texas Critical Data Centers to New Era Energy & Digital, noting that the deal was valued at $70m, of which $10m was payable in cash, $10m in common stock, and $50m by issuance of a senior secured convertible promissory notes.

Other key developments from the last month include a $500m debt facility raised from USD.AI, the possibility of investment from Digital Alpha, and a partnership with Cisco, and the senior executive reshuffle, which saw co-founder James Manning take over as CEO, with former CEO Wolf Schubert continuing as country manager in the US.

The prospectus notes a number of potential risk factors, including that the company has a "limited operating history and have incurred operating losses since our inception and anticipate that we will continue to incur losses in the foreseeable future," the capex-heavy nature of the neocloud market, supply chain issues, and the continued expection that Sharon AI will have "significant customer concentration."

In terms of customers, Sharon AI notes that in 2024, around 99 percent of its revenue came from just three customers. "If we were to lose one or more of our customers, our operating results could be materially adversely affected," it noted.

The company states that for the three months ending September 30, 2025, it had a net loss of $707,953, which consisted of the change in fair value of warrant liabilities of $467,250 and operational costs of $240,703. The same quarter for the year prior had a net loss of $59,858, which consisted of operational costs.

According to the filing, in September 2025, Sharon AI had a total of 432 GPUs and 195 CPUs online, located in three colocation data centers in Australia.

Sharon AI also notes the heavy competition in the sector, and that many of its competitors have advantages, including but not exclusive to "greater name recognition, longer operating histories, and larger market shares," and "more established marketing, banking, and compliance relationships."

One such competitor is CoreWeave, which filed for its IPO just less than a year ago, bringing in around $1.5 billion. Nscale and Lambda are also both reportedly exploring IPOs.