Quantenna Communications, a US-based wifi technology provider backed by home automation company Vivint and telecommunications firm NTT, set the range yesterday for an initial public offering that could reach approximately $107m in size.
The company is set to issue 6.7 million shares priced between $14 and $16. The underwriters have the option to buy another million shares, which could boost the size of the offering to more than $123m.
Founded in 2005 as MySource Communications, Quantenna produces high-speed wifi equipment that makes use of semiconductor architecture, system-level software and cloud analytics. It made a $1.9m net loss in the first nine months of 2016 from revenue of $91.6m.
The IPO follows approximately $200m in debt and equity financing, according to regulatory filings, with Quantenna’s last funding being a round backed by Vivint and NTT that closed at $35.5m in August 2015.
The round also featured Centerview Capital Technology, Rusnano, Sequoia Capital, DAG Ventures, Sigma Partners and Venrock, the latter five of which had also invested in a $79m round in 2012 that included Bright Capital and Southern Cross Venture Partners.
Telecommunications company Swisscom took part in a round that closed at $22m in 2010, while another telecom firm, Telefónica, invested an undisclosed amount the following year through its corporate venturing unit, Telefónica Ventures.
None of the corporates hold stakes in Quantenna sized at 5% or more. Its largest investor is Sequoia, whose stake will be diluted from 24.6% to 19.6% in the offering.
Other notable investors include Rusnano (an 8.2% stake post-IPO), Venrock (8.1%), Sigma Partners (7.5%), Southern Cross (7%) and DAG Ventures (6.6%).
Morgan Stanley is lead left bookrunner for the transaction while Barclays and Deutsche Bank Securities are the joint bookrunners. Needham & Company, William Blair and Roth Capital Partners are co-managers.
– Image courtesy of Quantenna Communications, Inc.