Updated at 1:05 p.m. PT with price and info after the market closed.
On the heels of its $126 million IPO, Wi-Fi technology and solutions maker Ruckus Wireless’ stock price dropped about 18 percent in its first day of trading on the New York Stock Exchange.
Ruckus priced its IPO for the NYSE at $15 a share Thursday night, at the top of its estimated price range of $13 to $15. With 8.4 million shares sold at $15 a piece, it raised $126 million.
Ruckus may have made a mistake to have its IPO this week, with unfavorable stock market conditions. Investors have shown concern about the economy following the U.S. presidential election and the “fiscal cliff” crisis in Washington, D.C.
Tech IPOs have been mixed in 2012, with consumer technology companies such as Facebook and Yelp going down after their IPOs, while enterprise-tech players like Palo Alto Networks and Workday shot up following strong IPOs.
In that context, Ruckus belongs with other enterprise tech companies because it provides Wi-Fi antennas, LTE small cells for carriers, and all kinds of devices meant to improve the Wi-Fi capabilities of companies. It has 65 patents for its tech, including one for its “adaptive antenna arrays that focus and direct Wi-Fi transmissions over the best signal path, automatically avoiding sources of Wi-Fi interference.”
However, even with providing enterprise-focused tech, Ruckus couldn’t withstand a marketplace that’s pessimistic about the economy in 2013. Perhaps it will be able to convince people to invest if and when U.S. lawmakers solve the next financial crisis.
Sunnyvale, Calif.-based Ruckus debuted in 2004 thanks to founders CEO Selina Lo, CTO William Kish, and chief wireless architect Victor Shtrom (all pictured). Prior to the IPO, it raised $54.2 million in funds from various investors, including Sequoia Capital, Motorola Ventures, Investor Growth Capital, and Sutter Hill Ventures.
Photo credit: Ruckus Wireless