Last night, Ruckus Wireless (NYSE:RKUS) priced its IPO at $15, at the top of the previously announced $13-to-$15 range.
Yet the enthusiasm quickly fizzled. The stock is now off by about 3.5% after dipping as much as 6.5% in today’s trading.
Keep in mind that the IPO market has been rough lately. In fact, the Ruckus deal was the first one for the past two weeks. During this time, there have been a variety of postponements and withdrawals. There have also been deterioration of recent offerings, such as Trulia (NYSE:TRLA) and WhiteWave (NYSE:WWAV).
As for Ruckus, it is certainly a solid company. It is a leader in the market for sophisticated Wi-Fi gear.
During the past nine months, Ruckus’ revenues have almost doubled to $152.5 million and net income came to $7.4 million. The company’s customers span categories like hospitality, education, healthcare, warehousing and logistics.
And the long-term prospects look bright for Ruckus. According to Infonetics Research, the market for Wi-Fi solutions is forecast to go from $296 million in 2011 to $2.8 billion in 2016. That’s about a 57% compound annual growth rate.
Tom Taulli runs the InvestorPlace blog IPOPlaybook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.