Venture

Arlo Opens At $18.50 After Pricing At $16

Morning Report: Another day, another IPO. Today Arlo started its first day of trading over 16 percent.

On the heels of audio hardware company Sonos’s own IPO, Arlo Technology started trading today after pricing its shares at $16 apiece, under its expected range of $18 to $20.

That makes Arlo the second consecutive hardware IPO to price its shares under its expected range, a bearish indicator. However, Sonos’s first day saw the company trade sharply higher. Arlo hopes that its first, full-day of trading will yield a similar result.

Arlo opened today at $18.50, up around 16 percent from its IPO price. The firm managed, therefore, to kick off its public life at a share price in its targeted range. The company has since appreciated to $20 per share, up a full 25 percent. (We’ll update this piece when trading halts.)

The company sold just over 10.2 million shares in its debut, raising around $163 million in the process. Arlo’s greenshoe option could see the company generate another $24.5 million off the sale of over 1.5 million shares. Arlo is majority-owned by NETGEAR, which owns about 86 percent of the company’s shares after the IPO.

Sans greenshoe shares, Arlo is worth around $1.16 billion at its IPO price. In its most recently reported quarter (using separation-adjusted numbers), the security camera concern had revenue of just over $100 million, gross profit of $29.1 million, operating expenses of $29.8 million, and a slim net loss of $480,000.

Another hardware company is now public. For its sake, let’s hope it doesn’t follow GoPro or FitBit, two physical-technology companies that struggled after their debut.

From The Crunchbase Daily:

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