US-based medical device developer Nevro set the range for its initial public offering on Monday between $15 and $17 a share and plans to raise up to $106.3m.
Nevro, which is backed by pharmaceutical firms Novo and Johnson & Johnson, medical treatment and research provider Mayo Clinic and medical device maker Covidien, will issue 6.25 million shares.
The company’s lead product is its Senza spinal cord stimulation system. It intends to use between $60m and $80m of the IPO proceeds to secure regulatory approval for Senza in the US and prepare for commercial launch.
Two other neurostimulation device companies, NeuroSigma and EndoStim, had originally planned to price IPOs of their own this month but have subsequently postponed them.
Johnson & Johnson Development Corporation, the company’s corporate venturing unit, is Nevro’s largest shareholder, owning an 18.1% stake set to be diluted to 13.9% in the offering.
Novo will become its second largest shareholder after buying around 938,000 shares in the IPO for up to $15.9m, lifting its stake from 11.9% to 12.7% in the process.
Other significant shareholders are Bay City Capital, Three Arch Partners (13.2% each), AMV Partners (10%), Aberdare Ventures (9.6%) and New Enterprise Associates, which will buy about 476,000 shares to keep its stake at 7.5%.
Underwriters J.P. Morgan Securities, Morgan Stanley, Leerink Partners and JMP Securities will have a 30-day option to buy almost 938,000 additional shares, which could boost the size of the IPO to more than $122m.
Nevro has raised approximately $153m in venture funding since it was founded in 2006.