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 that an IPO has finally managed to make it back to market, but this priced at the low-end of an already reduced price range.
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
Is Your Money Earning the Best Possible Rate? (Sponsor)
Let’s face it: If your money is just sitting in a checking account, you’re losing value every single day. With most checking accounts offering little to no interest, the cash you worked so hard to save is gradually being eroded by inflation.
However, by moving that money into a high-yield savings account, you can put your cash to work, growing steadily with little to no effort on your part. In just a few clicks, you can set up a high-yield savings account and start earning interest immediately.
There are plenty of reputable banks and online platforms that offer competitive rates, and many of them come with zero fees and no minimum balance requirements. Click here to see if you’re earning the best possible rate on your money!
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
