Investors who backed medical technology company, Osteopore Ltd (ASX: OSX), which listed today, watched the company’s value go through the roof as the shares jumped by 300% in value and nearly a quarter of the 26.25 million shares issued changed hands.
Osteopore 3-D prints “bioresorbable” implants for surgery that dissolve as the bone heals. The implants have been successfully used in more than 20,000 operations without post-surgery complications, and the company achieved revenues of around A$990,000 in the 2018 calendar year.
The Perth- and Singapore-based startup raised raised $5.25 million at $0.20 a share for its IPO, which closed early in the face of strong institutional, high net worth and sophisticated investor demand. The raise gave the business a market capitalisation of $20.2 million.
After listing today at noon, the shares opened at $0.63, then soared as high as $0.80 before closing the day at $0.725. More than 6.3 million shares changed hands just four hours of trade.
The funds raised from the IPO will be used to enhance the market penetration of its FDA-approved Osteoplug (an implant for healing burr holes created during neurosurgery), Osteomesh (for craniofacial surgery to repair various types of fractures), and Osteostrip (for filling the void following a craniotomy – the surgical removal of bone from the skull to expose the brain).
The products are sold to hospitals globally and Osteopore to expand its sales and marketing infrastructure across Australia, Asia, USA and Europe. The company can also develop customised patient specific products where required for other therapeutic demands.
Osteopore’s Executive Director Geoff Pocock, who steered the company to listing over the last six months, told Startup Daily: “Today marks such a significant day in the company’s growth and demonstrates how well the ASX is positioned to support and grow technology companies with a pioneering offering”.
The company’s advisory team included Brett Sandercock, CFO of California-based medical equipment rockstar ResMed, who is joining the Board as non-executive chairman – his only external board position.
Alto Capital acted as lead manager to the IPO and Ventnor Capital acted as corporate advisor.