SI-Bone, a US-based surgical implant producer backed by pharmaceutical firm Novo, went public on Wednesday in a $108m initial public offering, issuing 7.2 million shares at $15.00 each.
The IPO price represented the top of the $13 to $15 range SI-Bone had set, and it increased the number of shares in the offering from 6.9 million. Its shares opened at $20.15 on its first day of trading on the Nasdaq Global Market and closed at $21.00 yesterday.
SI-Bone is the creator of a surgical implant system known as iFuse, which fuses the sacroiliac joints in the lower back to combat chronic back pain. It has been used in more than 34,000 operations since 2009.
The company was founded in 2008 when it was spun out of bone fusion technology developer Inbone Therapeutics as part of the latter’s acquisition by orthopaedic device producer Wright Medical Group.
Approximately $65m of the IPO proceeds have been allocated to sales and marketing as SI-Bone looks to increase the usage of iFuse. It made a $2m net loss in the first half of 2018 from sales of $26.4m.
SI-Bone had raised approximately $103m in funding prior to the offering, $33m of which came in a 2014 round featuring Novo, venture capital firm Skyline Ventures and investment firms investment firm Orbimed and Montreux Equity Partners.
Although it held a sub-5% stake in SI-Bone prior to the offering, Novo also took part in a $20.5m round in 2016 that was led by VC firm Arboretum Ventures with contributions from all SI-Bone’s existing investors.
Skyline Ventures bought almost $380,000 of shares in the offering and remains SI-Bone’s largest shareholder despite its stake being cut from 25.9% to 19.2%. Montreux has an 8.8% stake post-IPO and Redline Capital 4.1%.
Arboretum Ventures and OrbiMed each invested $3m in the IPO and emerged with stakes sized at 7.4% and 4.3% respectively.
Morgan Stanley and BofA Merrill Lynch are joint book-running managers for the IPO while Canaccord Genuity and JMP Securities are co-managers. They have the 30-day option to buy a further 1.08 million shares, increasing the IPO’s size to just over $124m.
