Ra Medical reaps $86m with IPO

Ra Medical (NYSE:RMED) said yesterday that its initial public offering brought in more than $86 million by the time it closed, including an underwriter’s option that added some $10 million to the take.

The $17-per-share flotation of 4.5 million shares was bolstered by the 585,000-share over-allotment, for gross proceeds of $86.2 million. Carlsbad, Calif.-based Ra Medical, which makes the Dabra atherectomy catheter laser for peripheral artery disease, said the net proceeds are expected to come to $67.6 million.

RMED shares debuted Sept. 27 on the New York Stock Exchange at $21.50 apiece, closing down -7.0% that day at $20 even. The stock was up 2.4% to $15.17 per share today in early trading.

Ra last week priced the IPO at $66 million, significantly higher than the range it indicated previously. The 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 – well below the more than $86 million Ra Medical indicated in an August regulatory filing that proved the a most accurate in the end.

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

The Dabra catheter is designed to destroy arteriosclerotic blockages with 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 in May and CE Mark approval in the European Union in 2016, originally planned to launch the IPO in February before renewing its registration in July.

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