Shares of Nano-X Imaging NNOX were higher in initial trading after the Israeli x-ray-tech company priced its IPO of 9.2 million shares at $18.
At last check the shares were up 22% at $21.91.
Gross proceeds of the offering, before deducting underwriting discounts and commissions and other offering expenses, are $165.2 million.
Nano-X also gave the underwriters a 30-day option to buy as many as 1.4 million additional shares at the IPO price. Nano-X is offering all the shares.
“As a first step to producing a new class of affordable medical imaging systems, we have focused on identifying and developing a novel X-ray source,” the company said in its F-1 filing with the Securities and Exchange Commission.
“Our X-ray source is based on a novel digital microelectromechanical system semiconductor cathode that we believe can achieve the same functionalities as legacy X-ray analog cathodes, while allowing for lower-cost production than existing medical imaging systems. We developed this technology over eight years to reach commercial applicability.”
Nano-X said its system will enable lower prices and wider accessibility to imaging systems.
“Our primary business model is based on a pay-per-scan pricing structure as opposed to the capital expenditure-based business model currently used by medical imaging manufacturing companies," the Neve Ilan, Israel, company said.
For the first six months of 2020, Nano-X posted a loss of 47 cents a share, widened from a loss of 7 cents in the year-earlier first half. Shares outstanding rose 25% to 29.3 million.
The offering is expected to close Aug. 25.
Cantor Fitzgerald, Oppenheimer, Berenberg and CIBC Capital Markets are joint book-runners. National Securities is co-manager for the offering.