Ubiquiti shrugs off weak market, sets IPO price range
(Reuters) - Ubiquiti Networks, a maker of wireless networking products, expects to sell 7 million common shares priced at $20-$22 apiece in a rare move to price an initial public offering in a sluggish market.
The company, partly owned by entities affiliated with Summit Partners LP, is selling 2.4 million shares, with the rest being offered by selling stockholders.
The U.S. IPO market has struggled as concerns about Europe's debt crisis and a weak recovery in the United States have made markets volatile. A number of deals were withdrawn in the past few months.
Growing demand for broadband voice, video and data communication is spurring growth at companies that make wireless networking gear -- crucial to improving connectivity.
For the year ended June 30, Ubiquiti posted a net income attributable to common shareholders of $4.9 million.
Ubiquiti plans to list its shares on Nasdaq under the symbol "UBNT."
UBS Investment Bank, Deutsche Bank Securities, Raymond James, Pacific Crest Securities and ThinkEquity LLC are underwriting the offering.
The amount of money a company says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO can be different.
(Reporting by Brenton Cordeiro and Tanya Agrawal in Bangalore; Editing by Viraj Nair)
(This story is corrected in headline to clarify company has set a price range and not yet priced its IPO)