Telecom Lead India: Wi-Fi products maker Ruckus Wireless is planning to raise up to $100 million in an initial public offering (IPO).
Recently, media reports suggested that Chinese telecom equipment maker Huawei is considering an IPO in the U.S. to enhance its transparency.
Ruckus Wireless, which makes wireless LAN products for both indoor and outdoor use, on Friday filed with U.S. regulators.
The company is planning to utilize net proceeds from the offering for working capital expense and other general corporate purposes.
Ruckus recorded a net profit of $6.1 million on revenue of $94 million for the six months ended June 30.
Recently, Meritech Capital Partners and SingTel Innov8, a subsidiary of the SingTel group, among others, invested $21.7 million in Ruckus Wireless. At present, the total investment in the company is $72.7 million since its formation in June 2004.
During the SingTel funding, Ruckus said it will use the proceeds to expand and fund future growth into the carrier mobile Internet infrastructure market as well as to bolster its rising position in the enterprise wireless LAN market.
BelAir Networks (Ericsson), Cisco, and Ruckus Wireless account for more than two-thirds of 2011 carrier Wi-Fi equipment revenue in 2011, according to Infonetics. The global carrier Wi-Fi equipment market will grow in the high double-digit percents annually at least through 2016, when it will hit $2.1 billion.
According to Ruckus Wireless, it has done the world’s largest Wi-Fi deployment in India through Tikona Digital Systems, which has installed over 45,000 mesh nodes across 35 cities to provide last-mile wireless access.
In Japan, KDDI, the national telecom provider, is using Ruckus Smart Wi-Fi to build the world’s largest mobile data offload network with over 120,000 Wi-Fi locations.
Ruckus Wireless sells its products worldwide through both direct and indirect channels. Enterprise wireless LAN systems are sold exclusively through network of more than 5,300 accredited channel partners, systems integrators and distributors, while the company’s mobile Wi-Fi systems are sold directly to global carriers. To date, the company has shipped over 3 million Smart Wi-Fi systems worldwide.
editor@telecomlead.com
