Summary
- Allegro Microsystems has filed proposed terms for its U.S. IPO.
- The firm designs and markets sensors for the automotive and industrial sectors.
- ALGM has suffered revenue decline due to the Covid-19 pandemic and I believe will continue to produce sub-par results until well into 2021, so I'll pass on the IPO.
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Quick Take
Allegro Microsystems (ALGM) has filed to raise $325 million in an IPO of its common stock, according to an S-1 registration statement.
The firm is a fabless semiconductor that designs sensor ICs and analog power ASICs.
ALGM has been negatively impacted by the Covid-19 pandemic, which I believe will continue until well into 2021.
Although the IPO is reasonably priced, I'll pass on the IPO due to my expectation of continued sub-par revenue results.
Company & Technology
Manchester, New Hampshire-based Allegro was founded to design and market sensor ICs and application specific ICs for the automotive and industrial markets.
Management is headed by president and CEO Ravi Vig, who has been with the firm since 1984 when he joined as an analog design engineer.
Below is a brief overview video of Allegro's angle sensors:
