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This company completed an initial public offering (IPO) of its stock in 2010. View articles that reference this company. Recent IPOs: Globe Specialty Metals • LogMeIn • Invesco Mortgage Capital • Medidata • Chemspec |
RigNet (NASDAQ:RNET) provides data networks to oil and gas companies. RigNet gives its customers voice, data, and video as well as real-time management services to the remote locations each of its clients' centers. The clients use RigNet's services to pass on information and make decisions between regions where standard telecommunication systems are unreliable or altogether unavailable. These locations include offshore and onshore oil rigs, oil transport vessels, production facilities, and support offices. As of September 2010, RigNet acted as the primary provider of communications to more than 375 customers, with more than 800 physical locations, in approximately 30 countries across 6 continents. RigNet charges most of its customers on a per rig, per day subscription which typically lasts between one month and three years. [1]
As traditional and easily accessed locations become increasingly scarce, Oil and Gas drilling and exploration has moved to capture locations which are farther out of reach. As a result, traditional lines of communication are often unavailable or far to unreliable. Furthermore, oil and gas companies require highly secure and reliable broadband networks due to: the need for real-time collaboration and coordination, the volatility of gas prices, and the need to transmit large data sets to make key decisions to maximize safety and performance.[2]
The company's initial public offering of stock on the NASDAQ occurred on December 14, 2010. The company offered 5M shares each for $12 each. The company had originally planed to sell 5M shares within the range of $14-$16. The deal raised $60M in total, which was $15M smaller than the center of the initial price range. The lead underwriters of the deal were Deutsche Bank AG (DB) and Jefferies Group (JEF).[3]
RigNet's total revenue for the fiscal year 2008 ended on December 31st was approximately $81M. This corresponds to a drop of 10% from the 2008 figure of $90M. The company also reported a net loss of $20M in 2009, while it had reported a net profit of $8.4M in 2008. This drop was primarily due to a change in fair value of preferred stock derivatives. Despite this, the total revenue for the first 9 months of 2010 was $68M, which was above the $61M reported for the first 9 months of 2009. [4]
References
- ↑ RNET 2010 S-1/A PROSPECTUS SUMMARY "Overview" pg 1
- ↑ RNET 2010 S-1/A PROSPECTUS SUMMARY "Our Market Opportunity" pg 3
- ↑ Renaissance Capital - IPO Home "RigNet prices IPO at $12, below the range" 14 Dec 2010
- ↑ RNET 2010 S-1/A PROSPECTUS SUMMARY "Summary Consolidate Financial Data" pg 10
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