Morning Report: Another day, another IPO. Today Arlo started its first day of trading over 16 percent.
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:
- July set an all-time record for the number of huge venture deals struck in a single month, with 55 rounds of $100 million or more totalling just over $15 billion. Crunchbase News takes a look at where the money went.
- Peloton, the maker of pricey and popular Internet-connected fitness bicycles, just raised $550 million in a massive new funding round led by TCV. The financing values New York-based Peloton at $4 billion.
- Startups getting multi-billion-dollar valuations sounds like a big deal. But maybe not to Apple. The valuation of the most valuable U.S. technology company just surpassed $1 trillion, an all-time record.
- Germany’s Siemens announced that it is acquiring Mendix, a low-code platform for app development, for $700 million. Founded in 2005, Boston-based Mendix previously raised $38 million in venture funding.
- Cisco’s $2.35 billion acquisition of Duo Security this week is just one of many multi-billion-dollar purchases over the years. Over the past two decades, the networking giant has made sixteen known startup acquisitions of $1 billion or more, out of a total of more than 200 deals.