Kestra prices first follow-on
Kestra Medical Technologies secured US$138m for the expanded sales and marketing of its wearable heart monitors on Tuesday, making it one of only a handful of members of the 2025 IPO class to return to market.
After the standard two days of marketing, Bank of America, Piper Sandler, JP Morgan, Goldman Sachs and Wells Fargo priced a slightly upsized offering of 6m shares at US$23, just below the US$23.01 last sale.
The offering was upsized slightly after the medtech's shares sold off nearly 15% during the marketing period.
Despite the hefty discount, Kestra still sold stock well above the US$17 offer from its US$232m Nasdaq IPO in March. The stock bounced back on Wednesday to a closing price of US$25.82.
Only a few members of this year's IPO class have returned with first follow-ons, including Karman (up 202%), Circle Internet (+182%), Airo Group (+140%), American Integrity Group (+29%) and Smithfield Foods (+10%).
Kestra is using the proceeds, together with cash on hand, to scale up its salesforce and clinical care specialists as well invest in new devices, supply chain and revenue cycle management capabilities.
The company now has over US$260m in cash to accomplish its goals.
Kestra’s Assure-branded wearable cardioverter defibrillator monitors patients’ heart rhythms and delivers life-saving shocks when needed.
Its share sale leveraged on good news of a 50% jump in preliminary Q2 revenues.