ShotSpotter Sets IPO Targets: $10-$12 Per Share, $26.6M Raised

The company would use half the money to pay off debt early.

by / May 23, 2017
An example of a map from ShotSpotter showing where gunshots were detected. SST

SST, the company behind the gunshot-detecting ShotSpotter technology, expects to raise $26.6 million in its upcoming initial public offering — half of which would be used to pay off debt.

The company publicly set targets for its stock price and fundraising totals in an amended filing with the U.S. Securities and Exchange Commission on May 19. The filing sets the expected price at $10-$12 per share and specifies that SST would be offering 2.8 million shares.

The filing also estimated that the total size of the market it’s selling into is about $710 million per year — $560 million in the U.S. and $150 million internationally. That’s based on 1,400 cities in the U.S. that have a homicide rate greater than four per 100,000 residents per year, and 200 cities in designated international markets that have more than 500,000 residents. SST reported $15.5 million in revenue in fiscal 2016.

SST had already proposed a maximum of $34.5 million on the stock offering, but didn’t name an expected target.

The filing shows that the company would turn $13.6 million of the capital into an early full payment of its debt owed to Orix Growth Capital, an equity and debt funding firm serving tech companies.

SST has already raised more than $67 million in venture funding.