Shares of Sonos rose as much as 34 percent to $20.20 (roughly Rs. 1,390) in their market debut on Thursday, at which the US wireless audio systems maker has a market value of nearly $1.9 billion (roughly Rs. 13,000 crores).
The stock opened at $16, about 7 percent above the initial public offering (IPO) price of $15 per share.
The IPO was priced below the target range of $17-$19 per share on Wednesday, signalling that investors are selective about backing stock market hopefuls in the technology sector.
"We definitely felt some nervousness from investors as we hit what seemed like some down days on the Nasdaq and we kind of got caught up in that," said Patrick Spence, chief executive officer at Sonos. "It's one day in the grand scheme of things."
Sonos' offering of about 5.6 million shares raised $83.3 million (roughly Rs. 573 crores). Existing Sonos shareholders, which include investment firm KKR & Co, sold an additional 8.3 million shares.
Sonos' IPO follows other successful technology listings this year, including those of Spotify Technology SA, Dropbox, and DocuSign.
Founded in 2002, Sonos' speakers and the company's tie-ups with around 100 music streaming providers, including Apple Music, Pandora, Spotify, and TuneIn, have attracted audiophiles around the world.
The Santa Barbara, California-based company has faced pressure over both the pricing and variety of its products, as smart speakers such as Amazon's Echo and Apple's HomePod entered the market.
"What I'm most excited about is being able to come to people listening to Pandora or Apple Music or something else and say 'Hey, for $149 (roughly Rs. 10,250) you can get started on Sonos and start listening to your music out loud in your home,'" Spence said.
Morgan Stanley, Goldman Sachs and Allen & Co are among the lead underwriters for the offering.
© Thomson Reuters 2018
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