Honeywell's Quantinuum is making a bold statement with its upcoming IPO

By Hannah Pedone

Quantinuum is going the traditional IPO route, while other quantum companies have gone public through SPACs. The move bolsters the company's credibility.

Honeywell announced on Wednesday that Quantinuum has filed for an IPO.

In what could be a big credibility boost for the industry, Honeywell International's quantum-computing business is about to go public.

Honeywell (HON) announced on Wednesday that its subsidiary Quantinuum has submitted confidential paperwork for an initial public offering.

Honeywell had previously announced plans to submit the registration in January. Details of the number of shares and price range for the offering were not specified.

The move "legitimizes" quantum companies and encourages public markets to view the technology as a "proven sector rather than a speculative one," Wedbush analyst Antoine Legault told MarketWatch.

"Nearly every single public quantum company" has debuted via a merger with a special-purpose acquisition corporation, Legault said. Those companies were able to bypass some of the scrutiny that comes with the IPO process, so it's notable that Quantinuum is breaking from the pack and pursuing a traditional offering.

The choice shows that the company wants to position itself as a "mature, well-funded, higher-quality asset" with strong backing from Honeywell, according to Legault. It also sends a message that the company doesn't need to fast-track its public debut.

Quantinuum, which was formed in 2021 by the merger of Honeywell Quantum Solutions and Cambridge Quantum, was valued at $10 billion in a fundraising round in September.

The full-stack quantum company markets itself as the world's "largest standalone integrated quantum computing company." Its CEO, Rajeeb Hazra, previously held leadership roles at Micron Technology (MU) and Intel (INTC).

Read more: Quantum stocks extend their gains. Why Nvidia's new models could give the industry a boost.

Last year, the company announced the launch of its commercial quantum computer, Helios. Quantinuum has a partnership to integrate the computer with Nvidia's (NVDA) artificial-intelligence supercomputing technology.

Honeywell CEO Vimal Kapur said on the company's last earnings call that Quantinuum's design and software stack aims to bring quantum programming "closer to the ease and flexibility of classical computing" and to lead to commercial adoption of the technology. He added that Quantinuum's commercial applications have drawn interest from banks, pharmaceutical companies and public-sector agencies.

Honeywell plans to report earnings on Thursday morning.

See also: Intel's stock has been so strong that even skeptics have changed their minds

-Hannah Pedone

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04-22-26 1320ET