Ubiquiti Breaks IPO Drought (UBNT)
After no IPOs for about two months, we finally have an IPO. Ubiquiti Networks, Inc. (NASDAQ: UBNT) is said to be a “next-generation communications technology company” that is actually a wireless networking technology provider targeting emerging markets. It is good news…
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Ubiquiti was supposed to come public in a price range of $20 to $22 per share. That was then lowered to a new range of $15 to $17 per share. The formal price was at $15 per share.
The offering is for 7,038,230 shares of common stock but the breakdown shows that only 2,395,328 shares are being sold by the company as selling stakeholders are offering 4,642,902 shares in this IPO. Summit Partners, L.P., a selling stockholder, has granted the underwriters a 30-day overallotment option for up to an additional 1,055,734 shares.
UBS Securities, Deutsche Bank Securities, and Raymond James & Associates are the joint book-running managers; co-managers are Pacific Crest Securities and ThinkEquity.
Reuters highlighted a key risk that is an unusual one for an initial public offering: Ubquiti has had products sold to North Korea, Syria, Cuba, and Iran in the past. About 70% of sales are international and the company’s annual revenues were nearly $198 million with earnings coming in just shy of $5 million.
JON C. OGG
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Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
