Gary Herick

Startup Funding, Venture Capital & Innovative Blockchain Capital

Public Offering: Sonos Prices IPO Between $17 And $19 Per Share

Public Offering from SonosPublic Offering: Sonos IPO march continues.

Sonos Public Offering Priced Between $17 and $19 per Share, Offering Could Top $300M

After previously releasing an S-1 and detailing its financial performance to the world, Sonos updated its filing today with a price range. The home audio company noted in its new document that it intends to sell equity in its public offering between $17 and $19 apiece.

The 15 Largest Global Startup Funding Rounds of June 2018

The company’s core offering is 13.9 million shares, implying a raise between $236 million and $264 million. However, when shares possibly tipped for underwriters (the so-called “greenshoe offering“) are included, the company could raise as much as $303.5 million.

Not all the money will go to Sonos. Existing shareholders are unloading 8.3 million shares in the IPO, while Sonos itself is selling 5.6 million shares before the greenshoe option is tallied. (In the transaction, the greenshoe is split between the company and existing shareholders 833,333 to 1.25 million.)

After the company’s debut, the firm will have 98.4 million shares outstanding, roughly. At the top-end of its range, Sonos would be worth just under $1.9 billion. As that number is below estimates, I suspect that Spotify will look to bolster its range in the coming days.

Sonos recorded a loss in its most recent quarter, losing $32.6 million against $186.7 million in top line. The firm historically records a large percentage of its yearly revenue during the holiday quarter, during which it also tends to drive positive net income. The company has a record of losing money in non-holiday quarters.

Next up for Sonos is getting its new price through investors and live. We’ll have continuing notes as the firm gets closer to showing up on Wall Street.

The story of Sonos might seem like that, from a distance. Its four founders – John MacFarlane, Tom Cullen, Trung Mai, and Craig Shelburne – conjured a daring vision based on technology that didn’t exist at the time. Fueled with the insight earned from success in the first phase of Internet-based business-building, they chose as their next mission a new way to bring music to every home – wirelessly, in multiple rooms, from PCs and the Internet, with awesome sound. They hired an amazing team who built amazing products from scratch, and music devotees all over the world found a new brand to fall in love with.