On June 30, 2017 Audinate, the makers of Dante, had their initial public offering of stock on the ASX (Australian Securities Exchange). I first learned about this IPO via Installation Magazine’s website; their article provides more details. I did glean a few pieces of information that surprised me. Yamaha was their largest customer last year accounting for about a fifth of their total revenue. Yamaha now owns 10% of the company. According to the Australian Financial Review , Audinate was valued at between AUS$96 million (US$73.6 million) and AUS$110 million (US$84.4 million) by the brokerage handling the offering.
After the first day of trading the results were slightly different. The total amount Audinate raised was A$21 million (US$16.1 million) which resulted in the company being valued at approximately A$72.6 million (US$55.4 million).
Why does this matter to the AV Industry?
For the most part there will likely be very little impact in the short term (~90 days). There could be variances in the licensing fees and hardware costs between different customers. The other change is venture capital companies holding more than 40% of the stock. These companies will want Audinate’s stock to increase in value and produce dividends. The most direct method to achieve these targets is to make a profit each fiscal quarter and more importantly each fiscal year. It also requires a year over year growth trend. These requirements and timelines do have an impact on how a corporation operates.
What do you think? Leave a comment and let us know.
Note: Mid-Market Rates on June 30, 2017 at 12:00 UTC (6:00AM US CDT) were used for currency conversion.