Wireless speaker pioneer Sonos Inc jumps as much as 23 percent in debut

Shares of Sonos Inc rose as much as 23 percent to $18.50 in their market debut on Thursday, at which the U.S. wireless audio systems maker has a market value of about $1.82 billion.

The stock opened at $16, about 7 percent above the initial public offering (IPO) price of $15 per share.

The IPO was priced below the target range of $17-$19 per share on Wednesday, signaling that investors are selective about backing stock market hopefuls in the technology sector.

Sonos` offering of about 5.6 million shares raised $83.3 million. Existing Sonos shareholders, which include investment firm KKR & Co, sold an additional 8.3 million shares.

Sonos` IPO follows other successful technology listings this year including those of Spotify Technology SA, Dropbox Inc and DocuSign Inc.

Founded in 2002, Sonos` speakers and the company`s tie-ups with around 100 music streaming providers including Apple Music, Pandora, Spotify and TuneIn have attracted audiophiles around the world.

The Santa Barbara, California-based company has faced pressure over both the pricing and variety of its products, as smart speakers such as Amazon Inc`s Echo and Apple`s HomePod entered the market.

Morgan Stanley, Goldman Sachs and Allen & Co are among the lead underwriters for the offering.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)