Alarm.com (ALRM) Opens Strong on Nasdaq; Home Automation Stock Rising
Alarm.com (Nasdaq: ALRM), leading provider of cloud platforms for security and home automation, opened with a bang on Nasdaq today.
Millions of shares of Alarm.com (Nasdaq: ALRM) are trading hands in the first day of the home automation provider’s IPO. The company, which was offering 7 million shares at $14, saw its stock open at $16.05, or almost 15% above the initial offering price.
In only an hour of trading, nearly 6 million shares have been exchanged at prices up to $17.88, or 27.7% above the offering price.
Alarm.com is only the second worthwhile pure-play home automation IPO after Control4, which went public in 2013.
On its first day of trading, Control4 opened at 23.4% above its offering price and ended the day at 25.3% above its initial price.
When Alarm.com announced its impending IPO through a Form S-1 Filing in May 2015, we speculated the company would achieve a market valuation of about $850 million to $900 million (and I added some bonus points for hype factor to bring the potential market cap to more than $1 billion).
At $14 per share, the initial fully diluted market value was about $669 million.
The Alarm.com underwriters have been granted a 30-day option to purchase up to an additional 525,000 shares from Alarm.com and up to 525,000 shares of common stock from selling stockholders at the IPO price to cover over-allotments, if any.
We’ll keep an eye on the market cap in the coming days.
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Julie Jacobson is founding editor of CE Pro, the leading media brand for the home-technology channel. She has covered the smart-home industry since 1994, long before there was much of an Internet, let alone an Internet of things. Currently she studies, speaks, writes and rabble-rouses in the areas of home automation, security, networked A/V, wellness-related technology, biophilic design, and the business of home technology. Julie majored in Economics at the University of Michigan, spent a year abroad at Cambridge University, and earned an MBA from the University of Texas at Austin. She is a recipient of the annual CTA TechHome Leadership Award, and a CEDIA Fellows honoree. A washed-up Ultimate Frisbee player, Julie currently resides in San Antonio, Texas and sometimes St. Paul, Minn. Follow on Twitter: @juliejacobson Email Julie at firstname.lastname@example.org
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