(By Balachander) Ruckus Wireless Inc. (RKUS), a provider of WiFi services, has priced its initial public offering (IPO) of 8.4 million shares at $15.00 a piece, the high end of its proposed range.
The Sunnyvale, California-based company, which makes advanced Wi-Fi controllers and gateways, estimated pricing between $13.00 and $15.00 per share.
The company expects net proceeds from the offering to be roughly $94.4 million.
Ruckus is offering 7 million shares, while stockholders are offering 1.4 million.
Investors in the company include: Sequoia, Sutter Hill, Investor AB, Motorola Ventures, T-Ventures, Telus, Firelake Capital, Focus Ventures.
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The company, which commenced operations on June 2004, earned $29.8 million on revenue of $152.5 million for the first nine months of 2012, in which it added over 7,100 new end-customers.
For the year ended December 31, 2011, the company posted net income of $4.2 million on revenue of $120.0 million.
According to Gartner Inc., the market for Wi-Fi networking solutions for enterprises is expected to grow to $6.9 billion in 2016 from $3.4 billion in 2011, representing a 15 percent compound annual growth rate.
The company's customers include Time Warner Cable Inc. (TWC), Bright House Networks, The Cloud (a BSkyB Company), KDDI, Tikona Digital Networks and Towerstream.
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Goldman Sachs & Co (GS) and Morgan Stanley (MS) are the lead underwriters for the offering.
The shares are expected to begin trading on the New York Stock Exchange today.