Israel-based medical imaging system developer Nano-X Imaging floated on Friday in a $165m initial public offering that represented an exit for corporates SK Telecom, iA Financial, Foxconn and Fujifilm.
The offering consisted of almost 9.18 million shares issued on the Nasdaq Global Market and priced at the top of the IPO’s $16 to $18 range. The company’s shares closed at $21.70 and have risen to $26.39 at time of publication giving it a market capitalisation of $1.18bn.
Nano-X has developed X-ray technology based on a digital microelectromechanical system that could function the same as traditional X-ray analogue cathodes at a significantly more affordable cost.
The IPO proceeds will be combined with the company’s cash on hand, and between $144m and $194m will fund production of the first batch of Nano-X’s Nanox.ARC systems in addition to upgrading its manufacturing capabilities.
Up to $30m will cover shipping, installation and deployment of the first wave of Nanox.ARC devices, while $5m to $9m will be channelled into research and development activities.
The initial IPO filing revealed Nano-X had raised $109m in equity funding since December 2019, having closed its $51m series B round in June this year, reportedly valuing it at $600m.
The round boosted the company’s overall funding to $138m and included telecommunications firm SK Telecom, manufacturing services provider Foxconn and equipment maker Fujifilm. Its other backers include insurance group iA Financial Group and venture capital firm Yozma Group.
Existing investors including Foxconn affiliate Jin Ji Full Investment Holding, SK Telecom, iA Financial and Yozma had expressed interest in buying up to $80m of shares in the offering but Nano-X has not confirmed whether they did so.
SK Telecom is Nano-X’s largest shareholder, the owner of a 16.2% stake set to be cut to 13% in the offering. Other notable investors include an entity known as Asia Beam (5.9% post-IPO) and Yozma (5.7%).
Cantor Fitzgerald, Oppenheimer, Berenberg and CIBC Capital Markets are joint bookrunners for the offering while National Securities Corporation is co-manager. They have the opportunity over 30 days to buy nearly 1.38 additional shares at the IPO price, which would lift it to $190m.
