Ubiquiti Networks, which provides wireless networking solutions to carriers in underserved markets, lowered the price range for its upcoming IPO on Thursday. The San Jose, CA-based company now plans to raise $113 million by offering 7.0 million at a price range of $15.00 to $17.00. The company had previously filed to offer 7.0 million at a range of $20.00 to $22.00. At the mid-point of the revised range, Ubiquiti Networks will raise 24% fewer proceeds than previously anticipated. Ubiquiti Networks, which was founded in 2005 and booked $198 million in sales for the 12 months ended June 30, 2011, plans to list on the NASDAQ under the symbol UBNT. UBS Investment Bank, Raymond James, and Deutsche Bank Securities are the lead underwriters on the deal. It is expected to price during the week of October 10.
Read more about Ubiquiti's business, risks and outlook.
Ubiquiti is attempting to be the first company to go public in the US since Tudou (TUDO) completed its IPO in mid-August. As a result, it will act as a litmus test of risk appetite among IPO investors. Given the nervous state of the broader equity markets, as well as recent weak trading by some of Ubiquiti's peers, investors will be cautious approaching this deal. That said, Ubiquiti's fast growth and strong margins may be enough for it to end the IPO drought.
