Ruckus Wireless Inc raised $126 million in its initial public offering, by selling 8.4 million shares for $15 each, after offering them for $13 to $15. The stock will begin trading today on the New York Stock Exchange under the symbol RKUS.
The wireless-networking equipment manufacturer is the market leader in the gear that allows phone companies the ability to shunt data traffic from overcrowded cellular networks onto higher-capacity Wi-Fi. The company’s small networking devices are used by carriers by placing them on telephone poles, street lights, or roofs to relieve networks swamped by data traffic from smartphones. The company competes with Meru Networks, Inc. (NASDAQ:MERU), Aruba Networks, Inc. (NASDAQ:ARUN), and larger companies, such as Cisco Systems, Inc. (NASDAQ:CSCO). Its customers include Time Warner Cable Inc (NYSE:TWC), Towerstream Corporation (NASDAQ:TWER), Tikona Digital Networks, and Bright House Networks among others.
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According to the regulatory filing, Menlo Park, California-based, Sequoia Capital is the largest shareholder, with a 24 percent stake in Ruckus following the IPO. The company did not reveal the plans of how it intends to use the proceeds from the offerings, but it may utilize them for acquisitions and general corporate purposes, including sales and marketing.
Sunnyvale, California based Ruckus, posted revenue of $152.5 million for the nine months through Sept. 30, which was almost double compared to the previous year. Net income for the period was $7.4 million, compared with break-even results in the year-earlier period. Goldman Sachs Group, Inc. (NYSE:GS) and Morgan Stanley (NYSE:MS) led the IPO deal for Ruckus. Shares of the WiFi products maker fell 5 percent in their market debut on Friday.
Some of the other companies that came up with IPO’s this month, include: