The Conversation (0)
The company has set a price range of US$18 to US$20 per share and plans to raise US$194 million by offering 10.2 million shares.
Arlo Technologies, a wholly-owned subsidiary of Netgear (NASDAQ:NTGR), revealed on Monday (July 23) details of its proposed initial public offering (IPO).
In a filing with the U.S. Securities and Exchange Commission (SEC), Arlo Technologies expect to raise US$194 million by offering 10.2 million shares and has set the price range of US$18 to US$20 per share.
The company has applied to list its common stock on the New York Stock Exchange under the ticker symbol, “ARLO”.
Arlo Technologies, leader in home networking and smart home security products initially filed its IPO on July 6, however the company did not reveal any additional details or terms in the SEC filing.
In Netgear’s financial results released on Monday for the second quarter of 2018, the company reported that net revenues of Arlo segment was US$104.8 million, which is a 33 percent increase year-over-year. On a sequential basis, the segment’s net revenue grew 8.9 percent.
Christine Gorjanc, chief financial officer of Netgear said in the earnings call that the company would invest heavily in research and development (R&D) for Arlo Technologies.
“We are adding resources to the key growth areas of our business, in addition to adding resources as we stand up Arlo Technologies as a public company and expect to continue to add additional headcount during the third quarter of 2018,” Gorjanc said.
In its filing with the SEC, Arlo noted that they would operate independently but as a controlled company and that that Netgear’s interests may conflict with its interest and the interest of shareholders.
Arlo Technologies has 2.2 million registered users as of Q2, 2018 with the company shipping 8.6 million units.
Further, Arlo on Monday announced a new connected doorbell which when connected to its Arlo app will let users access to interact with visitors through the integrated camera.
Don’t forget to follow us @INN_Technology for real-time news updates!
Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.