IPO

Sonos IPO To Reach $264M

Sonos Speakers Integration

Wireless speaker pioneer Sonos Inc. plans to raise as much as $264.1 million in its upcoming initial public offering.

According to Bloomberg, the company — which competes with Amazon, Google and Apple — introduced its first home-audio system in 2005. Today, it reports that its customers listen to about 70 hours of content a month, and its products are now in about 7 million households worldwide.

The California-based company is selling 13.9 million shares at a price of $17 to $19 a share, it revealed in a regulatory filing Monday (July 23). The underwriters have been given the right to buy an additional 2.08 million shares to cover any over-allotment.

The total market valuation of Sonos at $19 a share would amount to $1.87 billion, or $2.2 billion on a fully diluted basis. However, sources said in April that Sonos was targeting a valuation of $2.5 billion to $3 billion in the IPO.

In fiscal 2017, Sonos posted a net loss of $14.2 million on revenue of $992.5 million, down from a net loss of $38.2 million on $901.3 million of revenue in the previous financial year, according to a filing.

There was more good news, with revenues of $655.7 million posted in the six months ended March 31, 2018. In addition, the company turned a profit, with net income for the same period reached just $13.1 million.

To better take on its competitors, Sonos is switching its product line to voice-activated speakers. It launched its first such home theater product — the Sonos Beam — in July, following the launch of the Sonos One last October.

The company is also working to make deals with other firms that have developed voice-control technology. Its products now support Apple’s AirPlay 2 wireless music-streaming system, as well as Google’s Assistant.

According to the IPO filings, additional Sonos investors include KKR & Co., which owned an almost 26 percent stake as of June 30,  Index Ventures, which owns about 13 percent, and Sonos co-founder John MacFarlane, who owns about 10 percent.

——————————–

Latest Insights:

Our data and analytics team has developed a number of creative methodologies and frameworks that measure and benchmark the innovation that’s reshaping the payments and commerce ecosystem. In the December 2019 Mobile Card App Adoption Study, PYMNTS surveyed 2,000 U.S. consumers for a reveal of the four most compelling features apps must have to engage users and drive greater adoption.

TRENDING RIGHT NOW