The stock price of Silver Spring Networks Inc (NYSE:SSNI) opened at $22 per share, 29 percent higher than its initial public offering (IPO) price at $17 a share on Tuesday. The reaction of investors in the stock showed that they are confident in their bets on smart electrical grids.
Based on its filing with the Securities and Exchange Commission (SEC), Silver Spring Networks Inc (NYSE:SSNI) aims to sell 4.75 million common stock for $17 per share. The company sold approximately one million shares during the IPO. The company raised around $80.6 million, 30 percent higher than its expectations.
Silver Spring Networks Inc (NYSE:SSNI) provides networking platform and solutions for smart energy networks. The company helps utility companies to develop “smart grid,” a responsive electrical infrastructure capable in providing data on usage to help reduce costs and maximize energy efficiency. Consumers will be able to motor the amount of electricity they are using in real-time, thus they can adjust their usage during peak demand hours. The smart grid also allows the integration of renewable energy resources such as solar panels, according to the report from Bloomberg.
The revenue of Silver Spring Networks Inc (NYSE:SSNI) last year declined by 17 percent to $197 million. The company was established in 2002 and it has been planning for an IPO since July 2011.
Some of the early investors Of Silver Spring Networks include Foundation Capital, which owns approximately 28 percent stake and Kleiner Perkins Caufield & Byers, which owns around 13 percent stake in the company.
Last December, SolarCity Corp (NASDAQ:SCTY) conducted its IPO with an offering price of $8 per share. The stock price of the company skyrocketed by 47 percent to $11.79 per share during its first day of trading. The company is one of the largest installer and provider of commercial and residential solar power generating systems.
Other non-energy companies that recently experienced a successful IPO were Norwegian Cruise Line Holdings Ltd (NASDAQ:NCLH) and Xoom Corp (NASDAQ:XOOM). The stock price of the cruise line rose by more than 30 percent at $30 per share during its first day of trading in January. The company’s IPO price was $18 per share. On the other hand, Xoom’s stock value surged by 60 percent from its $16 per share offering price to $25 per share last month.
The lead underwriters for Silver Springs Networks were Goldman Sachs Group, Inc. (NYSE:GS) and Credit Suisse Group AG (NYSE:CS).