Networking company Netgear Inc., best known for its consumer routers, is spinning off its internet-connected camera business and taking it public, adding to a growing list of initial public offerings slated for the year ahead.

The business, called Arlo Technologies Inc., offers a lineup of home and business security cameras that offer high-definition video quality, two-way audio, live streaming, free cloud recording, instant alerts and other features.

The IPO will see Netgear offer 20 percent of common stock in a Nasdaq float. Current Netgear Senior Vice President Matthew McRae will become chief executive officer of Arlo on the completion of the IPO, although notably McRae is already referring to himself as Arlo CEO on both Twitter and LinkedIn.

The offering is subject to government approval. Netgear has confidentially submitted a draft registration statement with the U.S. Securities and Exchange Commission, with the IPO expected to be completed in the second half of 2018.

Trip Chowdhry, an analyst with Global Equities Research, wrote in a note to clients Tuesday that the IPO could raise between $500 million and $700 million and value Arlo at $3.5 billion.

The announcement of the Arlo spinoff came after Netgear reported strong fourth-quarter financials that beat market expectations. Netgear reported a net loss of $31.9 million on revenue of $397.1 million, up 8 percent from the same quarter in 2016. Profit before certain costs such as stock compensation, however, was 71 cents a share, significantly higher than the 64 cents analysts had been expecting.

Arlo will join a growing list of companies that are set to go public this year. Spotify AB was reported to have secretly filed for its IPO on the New York Stock Exchange Jan. 3. Dropbox Inc. was reported to have secretly filled its public offering paperwork as well. SurveyMonkey Inc. was reported in talks for an IPO Jan. 17. while both Lyft Inc. and Chinese mobile device maker Xiaomi Inc. are believed to be looking at going public later this year.

Image: Arlo