Silver Spring Raises $81 Million Pricing IPO at MidpointLee Spears
Silver Spring Networks Inc., the maker of networking equipment for smart electricity grids, raised $81 million in its initial public offering after pricing an increased number of shares at the midpoint of the range.
The Redwood City, California-based company sold 4.75 million shares for $17 each, according to data compiled by Bloomberg, after offering 3.71 million shares for $16 to $18 apiece. The stock will be listed on the New York Stock Exchange under SSNI.
The company, which filed for a $150 million IPO last July, planned to sell all of the shares, according to the original terms of the prospectus, and to raise an additional $12 million in a private placement to its biggest shareholder, Foundation Capital.
Revenue at the power-grid networking company declined 17 percent to $196.7 million in the 12 months through December compared with the previous year, regulatory filings show. It recorded a net loss of $89.7 million, narrower than the $92.4 million loss a year earlier.
The company was founded in 2002 and provides customers with hardware and software that enable power providers to offer flexible pricing and monitor the health of power grids, according to company filings. Sales have been hurt by slow adoption of smart-grid technology, caused by uncertainty over the timing of U.S. stimulus spending and regulatory investigations, the filings show.
Goldman Sachs Group Inc. and Credit Suisse Group AG led the IPO.