(Reuters) – ADT Inc, a provider of security monitoring services, said on Thursday that its initial public offering was priced at $14 per share, below the expected range of $17 to $19.
The 105 million share offering raised about $1.47 billion, the company said.
Even at the lower valuation, the IPO is likely one of the largest in the first part of 2018.
The company’s stock is expected to debut on Friday on the New York Stock Exchange under the symbol “ADT”.
ADT is backed by private equity firm Apollo Global Management LLC, which will own 84.87 percent of common equity after the offering.
ADT, which has about 7.2 million customers, makes security monitoring devices such as surveillance cameras and burglary alarms, apart from home automation products including digital door locks and thermostats.
Handling about 15 million alarms annually, the company is the largest player in the residential monitored security industry with about 30 percent market share in the United States and Canada. However, it faces growing competition from monitoring apps that work directly on smartphones and other personal devices.
The company reported revenue of $3.21 billion for the nine months ended Sept. 30, up 69 percent from the same period a year earlier.
More than 90 percent of ADT’s revenue comes from recurring monthly payments under customer contract terms that are generally three to five years in length, the company said in its IPO filing.
Morgan Stanley, Goldman Sachs, Barclays, Deutsche Bank Securities and RBC Capital Markets were among top underwriters to the offering.
Reporting by Nikhil Subba in Bengaluru; Editing by Maju Samuel