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Cambium prices IPO at up to USD 15 per share
Posted on Friday, 14 June 2019 09:23
Cambium Networks, a US-based wireless broadband networking infrastructure provider, has priced its previously announced initial public offering (IPO) at between USD 13.00 and USD 15.00 apiece.
The company filed initial documents with the US Securities and Exchange Commission at the end of May but did not disclose how many shares will be issued or at what price they will be sold.
Cambium has now said it is launching a stock market flotation of 5.80 million stocks to raise a total USD 100.05 million if the overallotment option is exercised in full and at the highest price range.
JPMorgan, Goldman Sachs, Deutsche Bank Securities and Raymond James are among the investment banks working on the IPO, which will see the business list on Nasdaq under the ticker symbol CMBM.
Cambium intends to use USD 30.70 million of the proceeds raised to reduce its debt under its credit facility and USD 5.60 million to pay management fees owed to Vector Capital.
The group provides wireless broadband networking infrastructure for network operators, including medium-sized internet-service providers and government agencies.
Cambium’s products are deployed by medium-sized service providers serving between 5,000 and 200,000 subscribers, with such companies said to have contributed to around half the company’s total revenue for 2016, 2017 and 2018.
It has shipped more than 4.50 million devices since 2012, including over 1.00 million in 2018 to more than 10,000 network operators in over 145 countries.
Cambium generated revenue of USD 68.11 million in the three months ended 31st March 2019, compared to USD 58.45 million in the corresponding period of 2018.
Net income totalled USD 1.86 million in Q1 2019, compared to a loss of USD 227,000 in Q1 2018.
According to Zephyr, the M&A database published by Bureau van Dijk, there have been six IPOs of radio and television broadcasting and wireless communications equipment manufacturing companies announced or completed worldwide in 2019 to date.
Cambium represents the largest of these, with other targets including DreamTech of South Korea, US-based Sonim Technologies and China’s QuantumCTech.
© Zephus Ltd