Today, assuming nothing goes awry, we will get a new public cloud communications company to keep track of. RingCentral's initial public offering is all set, and yesterday they announced the initial pricing to be $13.00 per share.
Most of what we now call cloud communications companies are what we once called VoIP operators. And RingCentral is no different, having started serving businesses with the new technologies back in 2003. The business VoIP opportunity hasn't been flashy, but it has been steadily getting stronger ever since. Now that cloud technologies and practices are bolstering the underlying platforms, it's ready to step up in a much bigger way.
For its part, RingCentral has been growing rapidly by any measure. According to regulatory filings, they did $114.5M in revenue last year, and posted $73.2M during the first six months of the year. But that revenue has yet to turn a profit, so there's work yet to be done. RingCentral be issuing some 7.42M shares with the underwriters holding options on the usual cushion 15% for 30 days in case they need it.
Are the IPO markets starting to look up for cloud services and/or internet infrastructure? Could be, let's see how the market responds to this one.