By Arasu Kannagi Basil (Reuters) -Heartflow, backed by private investment firm Bain Capital, said on Wednesday it was targeting a valuation of up to $1.46 billion in its upsized U.S. initial public offering, indicating robust investor appetite for listings by medical technology companies. The Mountain View, California-based company is now looking to raise up to […]
Health
Bain Capital-backed Heartflow eyes $1.5 billion valuation in upsized US IPO
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By Arasu Kannagi Basil
(Reuters) -Heartflow, backed by private investment firm Bain Capital, said on Wednesday it was targeting a valuation of up to $1.46 billion in its upsized U.S. initial public offering, indicating robust investor appetite for listings by medical technology companies.
The Mountain View, California-based company is now looking to raise up to $300 million in the IPO by offering 16.7 million shares priced between $17 and $18 apiece.
It had earlier offered 12.5 million shares at $15 to $17 apiece.
Heartflow is among a string of companies racing to go public before the annual August lull kicks in. A successful listing could add to the growing momentum for medtech IPOs after a years-long downturn.
“The medtech sector appears to be rebounding, with Heartflow representing the industry’s third sizable offering in the past month,” said IPOX research associate Lukas Muehlbauer.
Medtech firms Beta Bionics and Kestra Medical went public in the first half of the year, following their upsized IPOs. Carlsmed and Shoulder Innovations debuted in late July.
Although there has been an uptick in medtech listings this year, most of them are currently trading below their IPO price.
“While peers are trading below their conservatively priced offers, Heartflow’s upsizing stands out, with the tightened price range indicating a well-covered book and strong demand following a convincing roadshow,” Muehlbauer said.
Heartflow had earlier looked to go public through a merger with Larry Robbins-backed special purpose acquisition company at a $2.8 billion valuation. Those plans fell apart in 2022.
Founded in 2007 as Cardiovascular Simulation, Heartflow’s AI-enabled products help physicians to diagnose and treat heart disease.
J.P. Morgan, Morgan Stanley and Piper Sandler are the lead underwriters for the offering. Heartflow will list on the Nasdaq on Friday under the symbol “HTFL”.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Shilpi Majumdar)