Wednesday, April 25, 2007

RED HERRING | Meru Networks Tests IPO Waters



"Business Wi-Fi startup Meru Networks will test Wall Street’s recent finicky appetite for telecom stock when it files for an initial public offering perhaps later this year.

In an exclusive interview with Red Herring, Meru’s CEO, Ihab Abu-Hakima, said the four-year-old Wi-Fi startup will follow the lead of six telecom companies that have gone public this year. Investor reaction to these companies has ranged from festive―BigBand Networks, Aruba Networks, and MetroPCS―to downright rude for Clearwire and Veraz Networks.

Meru also has a long list of private investors who have pumped $95 million into the Sunnyvale, California-based company. And they’re hoping that Meru’s reception is closer to that given rival Aruba. Its stock climbed almost 30 percent on its first day of trading a few weeks ago, and it has continued to trade near its first-day high ever since.

Now, is there room in that growth pattern for another Wi-Fi IPO? "

1 comment:

Anonymous said...

dont count on any fireworks with Meru. key sales personnel recently moved over to Aruba and stock is way over dilluted even before the offering. company is still bleeding cash and hasnt been able to turn a profit. no more rounds of private funding so its go public, or go bankrupt! IMHO should be a dog ipo...