Sonim filed for a US IPO, with reports that it could raise up to $58 million as it looks to capitalise on demand for rugged LTE devices.

In its filing, the company said it supplies devices and accessories to three of the four biggest operators in the US (AT&T, Sprint and Verizon) and the three largest players in Canada (Bell, Rogers and Telus). It noted the creation of the FirstNet public security network in the US has “created a significant opportunity for us to be the leading mobile solution provider for public sector task workers”.

It intends to use the proceeds of the IPO for “general corporate purposes”, including expanding its sales and marketing activities, as well as to reduce its debt.

Among its highlighted strategies is an investment in sales channel partnerships to boost its position in target enterprise and public sector markets; expanding its software platform to create and expand its subscription-based products and services for customers, such as data analytics and reporting; and potential geographic expansion in Australia and Europe.

Figures
In its filings, it said 2018 revenue of $135.7 million was up from $59 million in the prior year. The number of devices sold (smartphones and feature phones) increased to 311,000 from 146,000.

Sonim noted increased awareness of its products following sales and marketing efforts, and an increased focus by operators on public safety networks such as FirstNet.

Net loss attributable to shareholders of $8.9 million compared with a prior year loss of $15.4 million, although in both cases this was after the payment of significant dividends to shareholders ahead of a share reclassification.

Before dividends, it turned a net profit of $1.3 million in 2018, compared with a loss of $8.5 million in 2017.

It has said it does not intend to pay cash dividends in the foreseeable future.

As is standard in IPO documents, the company said it “may not achieve or maintain profitability in the future”, while also noting stronger revenue growth in recent periods.