Nov 16 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
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
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
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
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.