Multimedia over Coax Alliance (MoCA) chip vendor Entropic Communications is offering 10.75 million shares of its common stock at $9.70 per share in a public offering.
On Monday, Entropic said it would sell at least 10 million shares, but the minimum was raised yesterday to 10.75 million due to strong investor demand.
The $9.70 price per share is a 1 percent discount to Entropic's closing price on Wednesday of $9.80. Underwriters have the option of buying an additional 1.6 million shares.
Barclays Capital Inc. and J.P. Morgan Securities LLC are serving as the joint book-running managers for the offering, and Craig-Hallum Capital Group LLC, Signal Hill Capital Group LLC, Pacific Crest Securities LLC and Merriman Capital Inc. are serving as co-managers.
Entropic's fortunes have been riding the crest of MoCA-based whole-home DVR services that have been deployed this year. Comcast's AnyRoom DVR service uses Motorola boxes with Entropic's MoCA chips, while Cox and DirecTV are also using MoCA for their whole-home DVR services. MoCA uses the existing coaxial cable in a home to enable multi-room DVR services.
Rob Gelphman, chairman of MoCA's Marketing Work Group, said in a recent interview with CED that he believes MoCA will be the dominant technology for home networking in the United States, which is good news for Entropic's bottom line.