Wi-fi networking company Ruckus Wireless exercised its initial public offering (IPO) Friday, selling 8,400,000 shares of its stock at $US15 ($A14.50) per share, valued at $US126 million.
However, the value of the shares declined to $US12.25 per share, or 18.33 percent when the New York Stock Exchange closed Friday.
David Callisch, vice president of marketing for Ruckus, said economic uncertainty was slowing the IPO market.
"But given that we held our own, we're happy," Callisch said. "We priced [the stock] at the high end of the range, and we have a lot of strong investors."
Ruckus counts among its customers many wi-fi network carriers such as cable operators Time Warner Cable and Japanese mobile operator KDDI.
"Carriers have embraced wi-fi as a strategic technology for their services," Callisch said. "And Ruckus is in the forefront of that technology."
Ruckus filed for its IPO in October, saying it planned to obtain additional working capital, and that it may use funds raised to "acquire complementary businesses, products or technologies."
Ruckus is experiencing rapid growth. In a filing with the SEC Friday, the company said its net income for the first nine months of 2012 was $US29.8 million, up from $US1 million for the first nine months of 2011.
Revenue increased 93 percent, to $US152.5 million for the first nine months of 2012, compared to $US79 million for the first nine months of 2011.
In May, Ruckus said it was adding about 600 solution providers worldwide a quarter.