Ruckus Wireless shares fall in market debut
Nov 16 (Reuters) - Shares of WiFi products maker Ruckus Wireless Inc fell 5 percent in their market debut on Friday, a day after the company priced its initial public offering of 8.4 million shares at $15 each.
The pricing was at the high end of the company's expected price range of $13-$15 per share and values the company at $126 million.
Sunnyvale, California-based Ruckus, which makes wireless LAN products filed for a $100 million IPO in October.
A faltering U.S. recovery and weakness in Europe have hit network equipment makers over the past year as telecom service providers, their biggest customers, cut spending and delayed purchases of new equipment.
Goldman Sachs & Co, Morgan Stanley and Deutsche Bank Securities are the lead underwriters to the offering, the company said in a filing with the U.S. Securities and Exchange Commission.
Ruckus, backed by venture capital firm Sequoia Capital, recorded a net profit of $6.1 million, on revenue of $94 million for the six months ended June 30.
The company competes with Meru Networks Inc, Aruba Networks Inc and larger companies such as Cisco Systems Inc.
While Cisco reported better-than-expected results last week and pointed to a slow improvement of the U.S. market, it remained extremely cautious of Europe.
Net proceeds from the offering would be used for working capital expense and other general corporate purposes, Ruckus said.
Its customers include Time Warner Cable Inc, Towerstream Corp, Tikona Digital Networks, and Bright House Networks among others.
Shares of the company fell to $14.17 on the New York Stock Exchange on Friday.