RigNet (RNET), a data network infrastructure provider of the oil and gas industry, priced its IPO on 14th December, 2010, below the expected range at $12, with a first day return of 4.6%.
Business Overview (from prospectus)
We are a leading data network infrastructure provider serving the remote communications needs of the oil and gas industry. Through a controlled and managed Internet Protocol/Multiprotocol Label Switching, or IP/MPLS, global network, we deliver voice, data, video and other value-added services such as real-time management services, under a multi-tenant model. These turnkey solutions simplify the management of communications services, freeing our customers to focus attention on their core drilling and production operations. Our customers use our secure communications and private extranet to manage information flows and execute mission-critical operations primarily in remote areas where conventional telecommunications infrastructure is either unavailable or unreliable. We offer our clients what is often the sole means of communications with their remote operations, including offshore and land-based drilling rigs, offshore production facilities, energy support vessels and support offices. To ensure the maximum reliability demanded by our customers, we deliver our services through our IP/MPLS global network, tuned and optimized for remote communications with satellite endpoints, that serves oil and gas customers in both North America and internationally. As of September 30, 2010, we were operating as the primary provider of remote communications and collaborative applications to over 375 customers in over 800 physical locations in approximately 30 countries on six continents.
Offering: 5 million shares (1.6 million by selling stockholders) at $12 per share. Net proceeds from the offering will be used for general corporate purposes.
Revenue increased by $7.7 million, or 12.7%, to $68.6 million for the nine months ended September 30, 2010 from $60.9 million for the nine months ended September 30, 2009...Costs increased by $5.0 million, or 19.2%, to $31.2 million for the nine months ended September 30, 2010 from $26.2 million for the nine months ended September 30, 2009...General and administrative expenses increased by $4.7 million, or 41.4%, to $15.9 million for the nine months ended September 30, 2010 from $11.2 million for the nine months ended September 30, 2009...Net loss decreased by $2.3 million, to $10.8 million for the nine months ended September 30, 2010 from $13.1 million for the nine months ended September 30, 2009...
The telecommunications industry is highly competitive. We expect competition in the markets that we serve to persist and intensify. We face varying degrees of competition from a wide variety of companies, including new entrants from adjacent vertical markets. Our primary global competitors include CapRock Communications, Inc., which was recently acquired by Harris Corporation (HRS), Schlumberger Ltd’s Global Connectivity Services division (SLB), which Harris Corporation recently announced the entry into a definitive agreement to acquire, and the Broadband Division of Inmarsat plc’s subsidiary Stratos Global Corporation. In addition, there are a number of regional competitors in each local market. Onshore, we also face competition from: drilling instrumentation providers; living quarters companies; and other pure-play providers like us.
- Company website
- WSJ: RigNet IPO Of 5M Shares Prices At $12 Apiece, Below Range
- 247wallst: RigNet IPO Sees Soft Pricing