Silver Spring Networks is offering common shares of stock totaling 3.705 million shares with a total expected value of US$76 million. With the offer, the company would have 44 million shares of stock outstanding with a market capitalization of US$754.1 million.
With the offer, each common share of stock would be priced between US$16 and US$18 range. The underwriters of the IPO would be Goldman Sachs and Credit Suisse.
The finances of Silver Spring can be improved, as the company's 2012 revenue compared to its 2011 revenue showed a net loss of US$89.7 million. The revenue stream is quite erratic but it has logged around US$200 million in annual revenues. There is also a backlog of orders so the valuation of US$750 million is justified for the company.
The future for the company is quite bleak as there is fierce competition in the business. The meter manufacturers have expanded its service profiles allowing for implementation of smart grid business opportunities.
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