(Reuters) - Shares of gunshot-detection company ShotSpotter Inc (SSTI.O), which is backed by walkie-talkie maker Motorola Solutions (MSI.N), rose as much as 21 percent in their market debut on Wednesday.
The company’s initial public offering of 2.8 million shares was priced at $11 per share, the midpoint of its expected price range of $10 to $12 per share, raising $30.8 million.
ShotSpotter said it expects to use around $13.6 million of the net proceeds to reduce debt, and the rest for general purposes.
The company’s shares rose as much as $13.35 in their first hour of trading, giving it a market valuation of about $121.7 million.
Motorola Solutions owns around 10.8 percent of the company after the offering, second to venture capital firm Lauder Partners LLC, which owns 26.2 percent.
Newark, California-based ShotSpotter generates most of its revenue from contracts with the police departments of major cities in the United States, but also sees some interest from foreign governments and higher education institutions.
The company uses gunfire-specific sensors to alert authorities and customers of gun-related incidents, using quick text messages to dispatch location-related information.
The sensors, which are tuned to capture audio, are also used to help determine the number of shooters or capacity of the weapon used.
ShotSpotter posted a net loss of $1.6 million for the quarter ended March 31. (bit.ly/2r1SpHs)
Roth Capital Partners acted as sole book-running manager on the offering, with Northland Capital Markets and Imperial Capital as additional underwriters.
Reporting By Aparajita Saxena in Bengaluru; Editing by Maju Samuel