Samsara IPO: IoT company valued over US$ 12 billion. Buy call?

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 Samsara IPO: IoT company valued over US$ 12 billion. Buy call?
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Highlights 

  • The San Francisco-based Internet of Things (IoT) company raised US$ 805 million in gross proceeds.
  • After the stock market debut, Samsara achieved a valuation of more than US$ 12 billion.
  • Samsara sells hardware and cloud-based software to companies to enable them to manage operations like fleet management.

 


Samsara Inc. began trading on the New York Stock Exchange (NYSE) on Wednesday, December 16 and jumped 7.4 per cent during the trading session.

The San Francisco-based Internet of Things (IoT) company raised US$ 805 million in gross proceeds via initial public offering (IPO). Upon its debut, the Samsara stock (NYSE:IOT) opened at US$ 24.9 per share and closed at US$  24.7 apiece.

After the stock market debut, Samsara achieved a valuation of more than US$ 12 billion, which was much more than the US$ 5.4 billion valuations in a funding round led by Dragoneer Investment Group in 2020.

Should you buy Samsara (IOT) stock?


As the stock symbol suggests, Samsara is involved in enabling its business to carry out smooth business operations over the internet or other communication networks.

After the COVID-19 pandemic, almost everything is on the cloud and companies are finding new ways to run their operations online.

 Samsara IPO 2021

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Samsara sells hardware and cloud-based software to companies to enable them to manage operations like fleet management more efficiently.

Also Read: Reddit IPO: How to buy this discussion forum's stock?

Samsara has a decent balance sheet, and its revenue was US$ 249.9 million for the fiscal year ended January 30, 2021. In the same comparable period last year, the revenue was US$ 119.9 million.

For the fiscal year 2021, Samsara’s cash and cash equivalents were worth US$ 399.9 million in comparison to US$ 201.1 million in 2020.

Samsara narrowed its net loss to US$ 102.3 million for the nine months ended October 30, 2021, in comparison to US$ 174 million in the same comparable period.

Bottom line

In 2021, 80 companies have reportedly gone public in the US equity markets and raised more than US$ 37 billion, exceeding the previous year's record of US$ 20 billion in 2020.

Samsara’s IPO is one of the biggest this year and as it gained investors' attention on the first day of trading, it could continue to gain momentum in future.

Also Read: Solid Power to go public. How to buy the EV battery maker’s SLDP stock?

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