Arlo Technologies, a home security device company owned by Netgear, a US network equipment manufacturer, filed an IPO (IPO) application on Friday, with a planned financing of up to $100 million.
In the IPO prospectus, Arlo said that in the first three months of April 2, the company's estimated revenue was $101 million and the profit was $9.3 million. The company has 1.9 million registered users and a 40% share of the US consumer-grade networked camera system market.
Arlo plans to be listed on the New York Stock Exchange under the code "ARLO". The company submitted the listing application in the name of “Emerging Growth”, thus avoiding excessive listing requirements.
Arlo's IPO underwriters include Bank of America Merrill Lynch, Deutsche Bank and Guggenheim Securities.
In February of this year, Netgear announced the spin-off of Arlo. In the US stock market Friday afternoon trading, Netgear shares rose 3%.
For Netgear, Arlo is a very successful product line. However, Arlo's market is highly competitive, with related vendors including Ring, Nest and Canary. From 2016 to 2017, revenue from this business doubled as the connected home devices gained mainstream acceptance.