Thursday, August 2, 2018

Sonos Surges In IPO

Santa Barbara-based Sonos surged more than 25 percent in early trading on its first day as a public company on Thursday, after pricing its IPO on Wednesday evening at $15.00 a share. Sonos was trading up around 25%, as much as $18.90, during trading on Thursday morning. The maker of whole home, connected audio systems is the latest IPO success out of the Central Coast, which has seen a string of successful IPOs and acquisitions over the last few years. Sonos is backed by KKR, as well as Index Ventures and Redpoint Ventures. The company's IPO was underwritten by Morgan Stanley, Goldman Sachs & Co, Allen & Company, RBC Capital Markets, Jeffries, KKR, Raymond James, and Stifel. Although Sonos did see a big jump in its IPO, it priced below its earlier estimated IPO range of $17.00 to $19.00 per share, indicating less institutional investment interest in the IPO than the company had hoped. Sonos now is trading as SONO on the Nasdaq Global Select Market.