Axonics Modulation Technologies, a US-based neuromodulation device developer backed by conglomerate Legend Holdings, will raise $120m today when it floats on the Nasdaq Global Select Market later today.
The company increased the number of shares in the initial public offering from 6.67 million to 8 million and priced them at the middle of the IPO’s $14 to $16 range. The underwriters have the option to buy an additional 1.2 million shares to increase its size to $138m.
Axonics has created a sacral neuromodulation system called r-SNM to treat overactive bladder, faecal incontinence and urinary retention by sending mild electrical pulses to the sacral nerve in the pelvis.
The proceeds will fund r-SNM’s commercial launch in the US once it receives approval from the Food and Drug Administration. Axonics plans to spend $30m on hiring sales and clinical support staff, with at least 60 representatives to be hired for its sales team.
A further $25m will go to sacral neuromodulation research, as the company looks to improve its system by, among other things, reducing the number of battery recharging sessions required to charge the device.
The company had raised more than $126m in equity funding including $20.1m from venture capital firm Longitude Capital and investment firm Gilde Healthcare in April 2018 alongside a $20m credit facility supplied by Silicon Valley Bank.
Legend Capital, the venture capital firm formed by Legend Holdings, joined VC firm NeoMed and assorted angel investors for Axonics’ $32.6m series A round in 2014.
Both series A investors returned for a $38.5m series B round in 2015 led by Edmond de Rothschild Investment Partners (now known as Andera Partners) and backed by Advent Life Sciences, Cormorant Asset Management, Alfred Mann Foundation and various private investors.
Axonics subsequently closed a $35m series C featuring Legend Capital, NeoMed, Gilde Healthcare, CICA, Cormorant Asset Management, Edmond de Rothschild Investment Partners, Advent Life Sciences and Cormorant in July 2017.
Legend Capital held a 6.9% stake prior to the offering through a vehicle called Noble Prestige. Shareholders owning more than 5% include Andera Partners (14.4% pre-IPO), Longitude (12.9%), Gilde Healthcare (12.2%), Alfred E. Mann Foundation (11.3%), Advent (9.1%) and NeoMed (8.2%).
BofA Merrill Lynch and Morgan Stanley have been appointed joint book-running managers for the IPO while Wells Fargo Securities is lead manager and SunTrust Robinson Humphrey co-manager.
