SST Inc., formerly ShotSpotter, officially jumped into the public arena June 7, pricing its Nasdaq-listed stock at $11 and aiming for a gross $30.8 million capital raise.
The move, which makes SST the seventh Gov Tech 100 company to hit the stock market, puts the price directly in the middle of where SST initially estimated it would be. After deducting expenses, regulatory filings show that the company expects a net gain of $26.6 million.
SST's ShotSpotter technology uses sound sensors to detect gunshots and report them to public safety officials. The company operates in about 90 cities, most of them in the U.S. and its territories.
In the first several hours following SST’s introduction to the market, shares breached the $13 mark several times.
SST is in a comparatively modest position — according to Crunchbase data, most successful startup companies go public with an offering north of $200 million. SST also has less annual revenue at IPO than many gov tech companies that have gone public before it, and has posted net losses for two years. Entering the stock market on a net loss is not unusual, though companies like Axon and Maximus managed to turn profits before going public.
According to Securities and Exchange Commission filings, SST plans to use $13.6 million of its IPO proceeds to pay off all the debt it owes to Orix Growth Capital.
The largest stock owners in SST are Silicon Valley tech investment firm Lauder Partners with a 37.4 percent stake and Motorola Solutions with a 15.6 percent stake. Other large backers include Claremont Creek Ventures, RT Groos and Labrador Ventures.
The company expects to close its IPO on June 12, according to a press release.