Ra Medical prices up-sized $66m IPO

Ra Medical yesterday priced an initial public offering worth more than $66 million, significantly higher than the range it indicated last week.

The Carlsbad, Calif.-based company said Sept. 17 that it planned to float 3.3 million shares at $14 to $16 apiece, for gross proceeds of $46.7 million to $53.3 million. At the midpoint the flotation would gross $50.0 million, according to a new filing with the U.S. Securities & Exchange Commission. That’s well below the more than $86 million Ra Medical indicated in a regulatory filing last month.

But yesterday Ra said it issued 3.9 million shares at $17 apiece, for gross proceeds of $66.3 million. The IPO includes a 30-day underwriters option on another 585,000 shares that would fetch an additional $9.9 million if exercised in full.

Shares are expected to open today on the New York Stock Exchange under the “RMED” symbol, with the IPO slated to close Oct. 1, the company said.

Ra Medical makes the Dabra atherectomy catheter laser to treat patients with peripheral artery disease. The system is designed to destroy arteriosclerotic blockages through the use of radiation ablation, which the company touts as having significant advantages over traditional balloon angioplasty systems.

Ra, which won FDA 510(k) clearance for the system last May and CE Mark approval in the European Union in 2016, originally planned to launch the offering in February before renewing the registration in July.

Piper Jaffray & Co. and Cantor Fitzgerald are joint book-runners, with SunTrust Robinson Humphrey as lead manager and Nomura Securities International and Maxim Group as co-managers.

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