Shares of Silk Road Medical (SILK) popped more than 80% on Thursday with an initial public offering that drew heavy interest from investors. The Silk Road Medical IPO raised $120 million.
Shares priced at 20, the high end of its estimated range, and opened at 33.15. The stock climbed further, closing at 36.18, up 80.9% on the stock market today. Silk Road initially set a price range of 15 to 17, later revised to a range of 19 to 20.
Silk Road also hiked the number of shares for the offering by 28% to 6 million.
The Silk Road IPO garnered lots of attention from investors, with one IPO research firm giving the company its highest rating.
Research firm IPOboutique.com, which rates IPOs on a scale of 1 to 5, gave Silk Road a rare rating of 5, or “strongest buy,” at the IPO price. The last IPO that received a 5 rating was Facebook (FB) in 2012. Glitches marred the Facebook IPO, though.
Silk Road Medical focuses on preventing strokes. It uses minimally invasive technology “to safely and effectively treat carotid artery disease, one of the leading causes of stroke,” the company said in its IPO filing. “We have pioneered a new approach for the treatment of carotid artery disease called transcarotid artery revascularization, or TCAR, which we seek to establish as the standard of care.”
The company reported revenue of $34.5 million in 2018, up 143% from the prior year. It showed a loss of $39 million.
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