Allegro MicroSystems Goes Public
New Hampshire-based IC provider Allegro MicroSystems (NASDAQ: ALGM) went public.
Targeting a $350 million raise selling 25 million shares at $14 each, integrated circuit (IC) provider Allegro MicroSystems made its NASDAQ debut on Oct. 29 under the symbol ALGM. By market close, shares were hovering at around $17.50.
When the initial public offering closed on Nov. 2, Allegro announced net proceeds of approximately $320.8 million.
NASDAQ’s MarketSite in Times Square displays Allegro MicroSystems’ IPO listing on Oct. 29, 2020. (Photo via @Nasdaq on Twitter)
Shares are currently trading at $21.95 each, as of market close on Nov. 12. Allegro’s market cap is over $4.2 billion.
Allegro MicroSystems (NASDAQ: ALGM) stock chart from Oct. 29 to Nov. 12. (Chart via TradingView)
Welcome to the @Nasdaq family, @AllegroMicro! (party popper)— Nasdaq (@Nasdaq) October 29, 2020
Allegro MicroSystems, #NasdaqListed as $ALGM, is a global leader in power and sensing solutions.
This morning, the team joined us at @Nasdaq MarketSite to ring the opening bell in celebration of #AllegroIPO! pic.twitter.com/obNWDgpaSf
Allegro MicroSystems develops sensor ICs, analog power ICs and photonics components for automotive, industrial and infrastructure applications. Its portfolio includes ICs and components for electric vehicles, automotive safety systems, industrial automation, and power-saving solutions for data centers and green energy applications.
Allegro’s customer base includes more than 10,000 automotive and industrial OEMs and suppliers spanning the Americas, Europe, Japan, China, South Korea and other parts of Asia. The company employs more than 3,500 people worldwide.
According to an S-1 registration statement filed with the Securities and Exchange Commission, Allegro generated $724.3 million and $650.1 million in total net sales during 2019 and 2020, respectively.
The company has seen declining sales so far this year. Overall, the company reported $115 million in first-quarter sales (three-month period ending June 26, 2020), compared to $152.5 million for the same period last year (ending June 28, 2019).
According to the SEC filing, net sales across Allegro’s core markets have declined by 11.8%. Critically, the company saw an 11.1% drop in sales for its automotive IC solutions due to the overall decline in global vehicle production, corresponding to around 9 million units this year.
Allegro MicroSystems’ automotive segment is driven by its magnetic sensor portfolio, which was recently strengthened by its acquisition of Voxtel, Inc., a provider of photonic and 3D imaging technology with a focus on Light Detection and Ranging (LiDAR) applications. In announcing the acquisition in August 2020, Allegro MicroSystems CEO Ravi Vig stated that Allegro ships more than 1 billion devices into automotive systems annually, 100 million of which are shipped into advanced automotive safety systems.
Allegro’s second core market is its industrial segment, which saw a 16% decline in net sales from 2019. This segment includes Allegro’s factory automation solutions and energy management systems for data centers and green energy applications.
Sales in the company’s other product categories (including current and position sensors, motor drivers, and regulators) also fell by 10.8% in 2020 due to declining demand for computing, printer, and peripheral markets for products such as office overhead projectors.
The company will announce its second-quarter financial results on Nov. 19.