Aug 2 (Reuters) - Shares of Sonos Inc rose as much as 23 percent to $18.50 in their market debut on Thursday, at which the U.S. wireless audio systems maker has a market value of about $1.82 billion.
The stock opened at $16, about 7 percent above the initial public offering (IPO) price of $15 per share.
The IPO was priced below the target range of $17-$19 per share on Wednesday, signaling that investors are selective about backing stock market hopefuls in the technology sector.
Sonos’ offering of about 5.6 million shares raised $83.3 million. Existing Sonos shareholders, which include investment firm KKR & Co, sold an additional 8.3 million shares.
Sonos’ IPO follows other successful technology listings this year including those of Spotify Technology SA, Dropbox Inc and DocuSign Inc.
Founded in 2002, Sonos’ speakers and the company’s tie-ups with around 100 music streaming providers including Apple Music, Pandora, Spotify and TuneIn have attracted audiophiles around the world.
The Santa Barbara, California-based company has faced pressure over both the pricing and variety of its products, as smart speakers such as Amazon Inc’s Echo and Apple’s HomePod entered the market.
Morgan Stanley, Goldman Sachs and Allen & Co are among the lead underwriters for the offering. (Reporting by Nikhil Subba in Bengaluru; Editing by Shailesh Kuber)