Carlsmed launches US$107m Nasdaq IPO
Carlsmed is seeking to raise up to US$107.2m from its Nasdaq IPO launched early Tuesday, joining a rush of companies with an artificial intelligence overlay that are looking to go public.
Bank of America, Goldman Sachs and Piper Sandler are marketing the sale of 6.7m new shares at US$14-$16 for pricing after the market close next Tuesday, July 22.
Existing Carlsmed shareholders B Capital and US Venture Partners committed upfront to investing US$31m combined in the offering, or about one-third of the amount being targeted.
The spine-focused medical device maker is using proceeds to increase sales and marketing efforts for its aprevo line of surgical implants, as well as to invest in research and development. Aprevo employs AI software to design 3D printed implants customized to an individual patient’s anatomy.
In the second quarter ending June 30, Carlsmed expects to report a US$5.8m-$6.8m adjusted Ebitda loss on revenue of US$11.9m-$12.1m, a doubling of the top line from US$6.1m in the comparable year-ago period, based on preliminary unaudited results provided at launch.
While loss making, Carlsmed generated a US$8.5m-$8.8m gross profit for the period, highlighting its ability to scale to profitability.
Carlsmed is targeting a market capitalization of as much as roughly US$425m.
In addition to spine surgeries, Carlsmed is expanding aprevo for use in lumbar and cervical spine fusion surgery. It plans to grow internationally over time, though its current focus is the US.
Carlsmed raised US$64.5m on a Series C private round completed in March 2024. B Capital and US Venture, which currently own 35.1% and 28.3% stakes, led the Series C round.
Carlsmed joins a growing pipeline of IPOs being marketed. Online educator and McGraw Hill and consumer intelligence software provider NIQ Global Intelligence launched marketing of their IPOs early Monday, both touting enhancements to their business from AI.