Carlsmed prices Nasdaq IPO at midpoint
Carlsmed raised US$100.5m from its Nasdaq IPO late onTuesday after attracting incremental demand from new investors, though a large chunk of the deal was spoken for at launch by existing shareholders.
Bank of America, Goldman Sachs and Piper Sandler priced 6.7m shares at US$15, the midpoint of the US$14–$16 marketing range.
The spine-focused medical device maker's shares closed on Wednesday at US$14.50, down 3.3% from the offer price.
The banks allocated 70% of the shares to just 10 institutions and were able to zero out 40% of investors who put in for the deal.
Supposedly, that included existing backers B Capital and US Ventures Partners, which owned 35% and 28.3% stakes and had pledged upfront to invest US$31m in the offering.
Carlsmed sold a 25% stake in the offering, so this always figured to be a bit of a heavy lift.
The offering valued Carlsmed at a US$430m market capitalisation. That compares with US$1.5bn for Alphatec, the principal public comparable used to evaluate the Carlsmed IPO.
Though it is still losing money, Carlsmed is growing fast, with second-quarter revenues of US$11.9m–$12.1m, doubling from US$6.1m last year, based on preliminary unaudited results.
Carlsmed is using the money to expand the sales and marketing of its AI-enabled aprevo technology platform for spine surgery. Aprevo uses AI software to manage the entire surgery, from pre-operative planning and designing unique 3D printed implants to post-surgery rehab.