Investing

Quantenna Communications Closes in on IPO

Chris Lange

Published: October 27, 2016 3:05 pm

Last Updated: January 13, 2020 1:49 am

Quantenna Communications registered an amended Form S-1 with the U.S. Securities and Exchange Commission (SEC) for its initial public offering (IPO). The company intends to price its 6.7 million shares in the range of $14 to $16 per share, with an overallotment option for 1.05 million additional shares and it will then enter the market on Friday. At the $16 price, the entire offering is valued up to $123.28 million. The company intends to list its shares on the Nasdaq Global Select Market under the symbol QTNA.

The underwriters for the offering are Morgan Stanley, Barclays, Deutsche Bank, Needham, William Blair and Roth Capital Partners.

This company is a leader in the design, development and marketing of advanced high-speed wireless communication solutions enabling wireless local area networking. Its solutions are designed to deliver leading-edge Wi-Fi performance to support an increasing number of connected devices accessing a rapidly growing pool of digital content.

Quantenna combines its Wi-Fi systems and software expertise with high-performance radio frequency, mixed-signal and digital semiconductor design skills to provide highly integrated solutions to customers. Ultimately, this company is looking to address the increasing complexity inherent in managing Wi-Fi network access for multiple client devices with different high-bandwidth content streams, while simultaneously delivering superior network speed, broad coverage area, and high capacity and reliability.

These solutions have historically addressed the telecommunications service provider market for home networking applications, including home gateways, repeaters and set-top boxes, but the firm is increasingly addressing additional end markets, with solutions for retail, outdoor, small and medium business, enterprise and consumer electronics.

In a recent filing the company described its finances as follows:

For the year ended December 27, 2015, our revenue was $83.8 million and our net loss was $7.0 million, and we had an accumulated deficit of $159.7 million as of December 27, 2015. For the nine months ended September 25, 2016, our revenue was $91.6 million and our net loss was $1.9 million, and we had an accumulated deficit of $161.6 million as of September 25, 2016.

Quantenna intends to use the proceeds from this offering for general corporate purposes, including working capital, operating expenses and capital expenditures.