Procept BioRobotics, a US-based surgical robotic technology developer backed by pharmaceutical firm Novo, set the range yesterday for an initial public offering that would raise $132m at its top end.
The company plans to issue 5.5 million shares on the Nasdaq Global Market priced between $22 and $24 each. The initial price range would implies a market capitalisation of between $907m and $989m.
Founded in 2009, Procept is building a specialised type of automated surgical robot used in a treatment called aquablation therapy. It has an initial focus on the prostate gland condition known as benign prostatic hyperplasia.
The company will use approximately $45m of the IPO proceeds to hire new sales and marketing staff and about $25m for product development and research and development activities.
Procept’s largest shareholder, investment manager CPMG, is set to have its stake diluted from 30.1% to 26.1% through the offering. Viking Global Investors will hold a 10.9% stake and Fidelity will own 6.4%.
BofA Securities, Goldman Sachs, Cowen, Guggenheim Securities and SVB Leerink are underwriters for the offering, which includes a 30-day option for the purchase of 825,000 additional shares, potentially lifting its size to almost $152m.
The company has raised at least $210m of equity funding. It picked up $85m in its series G round, which was led by investment and financial services group Fidelity in July 2021 and which also featured T Rowe Price, CPMG, Viking Global, Perceptive Advisors and Duquesne Family Office.
Undisclosed investors supplied $77m of series F funding for Procept in August 2020, according to a regulatory document. It had collected $118m in a round led by Viking Global that included Perceptive Advisors and CPMG in 2018.
Novo led a $42m round for the company in 2015 backed by CPMG and undisclosed existing investors, after it raised $6m of equity funding and $1.6m in debt financing between 2013 and 2014.