Carlsmed Aims to Raise $107.2M Through US IPO.

Carlsmed, a medical tech firm using AI to tailor spine surgeries, plans to raise up to $107.2M through a U.S. IPO, selling 6.7M shares priced between $14 and $16 each. The IPO is being managed by Bank of America, Goldman Sachs, and Piper Sandler, and the company plans to list its shares on the Nasdaq under the ticker symbol CARL. At the high end, this would give Carlsmed a valuation of around $424.3M.

Carlsmed Inc., a medical technology firm leveraging artificial intelligence (AI) to personalize spine surgery, has launched its initial public offering (IPO) to raise up to $107.2 million. The company plans to sell 6.7 million shares priced between $14 and $16 each, with the IPO managed by Bank of America, Goldman Sachs, and Piper Sandler. The shares will be listed on the Nasdaq under the ticker symbol CARL. At the high end of the price range, this would give Carlsmed a valuation of approximately $424.3 million [1].

Carlsmed, which focuses on the spine-focused medical device market, is using the proceeds from the IPO to scale its sales and marketing efforts for its aprevo line of surgical implants. The aprevo line employs AI software to design 3D printed implants customized to an individual patient’s anatomy. The company also plans to invest in research and development to further advance its technology [1].

In the second quarter ending June 30, Carlsmed expects to report an adjusted EBITDA loss of $5.8 million to $6.8 million on revenue of $11.9 million to $12.1 million, representing a doubling of the top line from the prior year [1]. Despite being loss-making, the company generated a gross profit of $8.5 million to $8.8 million during the period, indicating its ability to scale to profitability.

Carlsmed’s IPO comes amidst a surge of companies with an AI overlay seeking to go public. NIQ Global Intelligence, an online consumer intelligence software provider, is set to launch its own IPO with a target raise of over $1 billion, valuing the company at approximately $10 billion [2]. NIQ was acquired by Advent International and former TransUnion CEO Jim Peck in 2021 for $2.7 billion and has since been preparing for its IPO, focusing on reducing its debt load.

Carlsmed’s IPO is part of a broader trend of private equity-backed companies returning to the US IPO market with high levels of debt. This trend reflects renewed investor confidence in the public markets and a willingness to support growth-oriented companies despite their debt profiles [3]. Analysts expect muted first-day price movements compared to recent high-profile listings, but the return of leveraged PE-backed IPOs signals a positive shift in the market.

References:
[1] https://www.ifre.com/equities/2287082/carlsmed-launches-us107m-nasdaq-ipo
[2] https://www.ainvest.com/news/niq-global-set-launch-1-billion-ipo-week-2507-62/
[3] https://news.bloomberglaw.com/private-equity/ai-surgical-firm-carlsmed-seeks-to-raise-107-2-million-in-ipo