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.
Note: Bradford is employed by Harman and wants to indicate that clearly. Harman is also an underwriter of AVNation. He does recuse himself from discussions to avoid any conflict or confusion when appropriate. He will represent Harman on occasion such as interviews at trade shows. This column is his own opinion and does not intend or attempt to speak on behalf of Harman.