Adesto Technologies, a US-based internet of things (IoT) technology developer backed by semiconductor technology producer Applied Materials and chip maker Altera, raised $25m when it floated on Nasdaq on Tuesday.
The company issued 5 million shares priced at $5.00 each. The IPO’s underwriters have a 30-day option to buy another 750,000 shares, which would increase the size of the offering to $28.75m.
Adesto manufactures ultra-low power memory products used in IoT devices. It made an $8.9m net loss in 2014 from revenue of $41.5m, a figure it is likely to come close to this year, judging by its financials in the first six months.
The offering followed $78.5m in venture funding and $8m in debt financing, according to regulatory filings. Applied Ventures, which acts as Applied’s corporate venturing arm, held a 15.6% stake that was diluted to 10.2% in the offering, while Altera’s share was cut from 8% to 5.2%.
Arch Venture Partners remain Adesto’s largest shareholder, retaining a 12.7% stake post-IPO, while other shareholders include Harris & Harris Group (10.6%), Ata Ventures (7.3%), Adams Street (6.6%) and Serge Dassault (5.7%).
The IPO price represents a fall from grace for Adesto and its investors. In the company’s $14m series D round in 2012, it sold shares at $31 each to the round’s participants.
Needham & Company and Oppenheimer & Co. are joint book-running managers for the IPO, while Roth Capital Partners is serving as co-manager.