Ruckus Wireless shares fall in debut on higher pricing
By Avik Das
(Reuters) - WiFi products maker Ruckus Wireless Inc failed to impress in its market debut after higher pricing of its offering tempered investor enthusiasm in a weak U.S. IPO market.
Shares of the company fell as much as 8 percent in its debut on Friday, a day after it priced its initial public offering of 8.4 million shares at $15 per share, the top end of its range.
At that price, the company is valued at $126 million.
Ruckus Wireless Chief Executive Selina Lo shrugged off the share movement saying one day was not an indication of overall performance.
"The market wasn't very strong today," she said adding that while some companies had decided to pull their IPO's planned for this week, Ruckus had seen "tremendous interest" from investors and therefore decided to go ahead.
Lo said she was confident about growth for the company especially after much larger competitor Cisco Systems Inc earlier in the week said service-provider Wi-Fi grew almost 100 percent year-over-year.
Ruckus Wireless makes WiFi technology for corporate and service providers, helping them offload traffic from their cellular networks
Tech IPOs have shown widely different results this year. Social network Facebook has seen its value drop almost 50 percent since its IPO in May while network security company Palo Alto Networks and social software company Workday both showed strong market debuts. Continued...