Samsara IPO: How to buy the IoT software company's stock?

Published on November 26, 2021 04:53 AM EST

Samsara IPO: How to buy the IoT software company's stock?

Highlights

Samsara plans to go public on the New York Stock Exchange (NYSE) and trade under the ticker symbol IOT.

Samsara is looking to raise US$ 100 million in gross proceeds from the offering, however, this could change after Samsara reveals the price range of the shares.

Samsara sells software to private and public organizations, which manage devices over the company's subscription-based cloud service.

The San Francisco-based software company Samsara, Inc. is looking to go public in the US stock market. Samsara is an Internet of Things (IoT) security software company and aims to increase the safety of operations that play an important role in driving the global economy.

Samsara plans to go public on the New York Stock Exchange (NYSE) and trade under the ticker symbol IOT. The price range and number of shares to be offered is not out yet and the company could soon file an amended prospectus with the regulatory authorities.

The Form S-1 filed with the Securities and Exchange Commission (SEC) describes JPMorgan Securities, Goldman Sachs, Morgan Stanley, and Allen as the join-leading underwriters for the initial public offering (IPO).

Samsara IPO: Key details

The Internet of Things software company is looking to raise US$ 100 million in gross proceeds from the offering, however, this could change after Samsara reveals the price range of the shares to be offered.

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Presently, one cannot buy the stock of this company and retail investors will have to wait until the final registration statement is filed and gets approval from the SEC. If the IPO happens, investors will likely get an option of buying the shares of the company before it becomes publicly traded.

Generally, investors use online trading platforms of brokerage companies for booking the pre-IPO shares and they are allocated through a lottery basis. Alternatively, some stockbrokers also offer pre-IPO stock to retail investors.

In August 2021, Samsara was reportedly valued at US$ 5.4 billion and so far, it has raised US$ 880 million through venture capitalists and private equity. Last year, the company had sold convertible notes for US$ 400 million.

Andreessen Horowitz is the largest private equity shareholder of Samsara with a stake of 20.1 per cent, followed by Catalyst General, which owns 11.6 per cent of the company’s Class B shares.

Bottom line

Samsara sells software to private and public organizations, which manage devices over the company's subscription-based cloud service. The company had more than 13,000 core customers as of October 30, 2021, and it generated US$ 5,000 annual recurring revenue per customer.

The company estimates that its total addressable market size will be approximately US$ 54.6 billion by the end of this year, and it will likely grow at a compound annual growth rate (CAGR) of 21 per cent till 2024.

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Raza Naqvi

Author

Raza Naqvi - Financial Journalist
1007 Posts
Raza comes from a hard-news background and is an experienced writer with a demonstrated history of working in reputed organizations like the United Nations, Indian Express, and Hindustan Times. Currently, he is exploring the financial world!...

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