BREAKING NEWS: Sonos Slashes IPO, Value Slumps To US$1.5B Questions Now About Their Future
As tipped by ChannelNews US based sound Company Sonos has struggled to raise the capital they need to secure their future with investor shunning the brand with their stock tipped to plunge when it lists later this week.
The Company priced its initial public offering (IPO) at $15 per share, well below its target range.
The Company who have been slammed by retailers for their business practises said late in the day that they had only managed to sell 5.6 million shares to raise $83.3 million.
Just two weeks prior, Sonos announced its intention to raise up to US$263.9 million, but years of losses and questions raised about the quality of Sonos speakers coupled with the fact that they need a proprietary mesh network vs operating on Bluetooth or Wi Fi network have spooked investors.
Another big issue has been the emergence of several new competitors with superior sound systems.
It also appears that one of the original backers of Sonos has also thrown in the towel after it emerged that they sold s8.3 million shares privately, at this stage it’s not known at what price the KKR & Co share sold for.
Commentators claim Sonos is looking to gain market support, over its ability to withstand competition from Apple and Google’s expanding sound portfolio.
As reported earlier today, Sonos has continued to face backlash from Australian retailers, following stringent sale terms.
As per its most recent fiscal year report, Sonos has post a net loss of US$14.2 million [year to September 30th], following revenues of US$992.5 million.
Earnings are an improvement versus the US$38.2 million loss recorded in fiscal 2016.
Sonos is set to start trading on the NASDAQ on Thursday, under the ticker symbol SONO.