Sonos filed with the SEC a few weeks ago for an Initial Public Offering or an IPO. Now it appears that the company would raise around $264.1 million from its public offering, and it is seeking a valuation of around $2.5-3 billion. The stock is expected to offer 13.9 million shares, with a price of $17 to $19 per share, according to the regulatory filing that Sonos filed on Monday. Additionally, underwriters have been given the right to buy 2.08 million additional shares to cover any over-allotment. If Sonos does price at $19 per share, the company would be valued at $1.87 billion. However, IPO's typically run up quite a bit in its first few weeks so it's still possible for Sonos to get its goal of $2.5 to 3 billion in valuation.
Sonos has been around since 2002, and debuted its first home audio system in 2005. Despite being around for nearly two decades, Sonos' portfolio isn't that large. This is because Sonos doesn't typically replace its products, but instead adds more products to its lineup so that there is something for everyone. The latest example of this is the Sonos Beam which is a new TV soundbar, but it is not replacing the several-year old Sonos PLAYBAR, nor the PLAYBASE that was released last year. Sonos got into the smart speaker market last year with the Sonos One, which is very similar to its PLAY:1 speaker, but with some slight design changes, and of course Amazon Alexa built-in. It continued getting into the market in 2018 with the Beam which is a smart TV Soundbar with Amazon Alexa also built-in.
While Sonos is a high-end audio company, with some great sounding speakers, they are also fairly expensive. For example, the Sonos PLAYBASE is $799, and the Sonos One is $199. It is also facing some heavy competition with Amazon, Apple and Google right now. While Sonos is in the smart speaker space, it needs to work with these competitors, since it doesn't have its own personal assistant, like these three companies do. Which may cause investors to stay away from Sonos' IPO, at least until its first quarter or two, earnings reports are announced.