Vapotherm, the US-based respiratory distress treatment provider backed by healthcare consortium Kaiser Permanente, has closed its initial public offering at $64.4m after the underwriters took up the over-allotment option.
The company raised an initial $56m when it floated on the New York Stock Exchange on Wednesday last week, pricing its shares at the bottom of the offering’s $14 to $16 range.
Joint book-running managers BofA Merrill Lynch and William Blair, lead manager Canaccord Genuity and co-manager BTIG bought an additional $8.4m of shares two days later to close the IPO. The shares closed at $17.14 yesterday.
Vapotherm’s Precision Flow system uses heated, humidified and oxygenated air to treat respiratory distress. It will allocate most of the proceeds from the offering to beefing up sales and marketing while additional capital will support research and development.
The IPO followed abut $180m in funding, including a $29m round in 2013 featuring Kaiser Permanente unit Kaiser Permanente Ventures, GE Asset Management, part of industrial technology producer General Electric, 3×5 Partners, Morgenthaler Ventures, QuestMark Partners, Cross Creek and Integral Capital Partners.
Kaiser Permanente Ventures, 3×5 Partners, Morgenthaler, Integral Capital, Questmark, Gilde Healthcare Partners, Adage Capital Management and Cross Creek invested a further $24m in 2014 before Kaiser Permanente and Arnerich Massena added $30m in a round that closed two years later.
Kaiser Permanente’s stake was lower than 5% pre-offering. The company’s largest shareholders are now holding vehicle 3×5 (19.2% split between two entities), SightLine Partners (7.6%), Gilde Healthcare (6.3%) and Questmark (5.8%).
