Shoulder Innovations Seeks $105M in U.S. IPO, Revenue Up 40%

Shoulder Innovations Inc, a medical technology company based in Grand Rapids, Michigan, has filed for an initial public offering (IPO) in the United States, aiming to raise up to $105 million. The company submitted its application to the U.S. Securities and Exchange Commission (SEC) on Thursday, marking its entry into the resurgent U.S. IPO market.

Shoulder Innovations plans to issue 5 million shares, with a proposed price range of $19 to $21 per share. If the offering is priced at the upper end of the range, the company's valuation could reach $418 million. According to roadshow materials, Shoulder Innovations is expected to set its final price on July 30.

Founded in 2009, Shoulder Innovations specializes in developing advanced implant systems for shoulder replacement surgeries. The company integrates artificial intelligence (AI) and machine learning technologies into preoperative surgical planning, enhancing the precision and efficiency of surgical procedures. Financial data indicates that for the three months ending March 31, 2024, the company achieved revenue of $10.1 million, a significant increase from $7.2 million in the same period last year. However, the company's net loss also widened, from $3.6 million to $4.7 million during the same period.

In terms of shareholding structure, US Venture Partners, a U.S. venture capital firm, is the largest shareholder, expected to hold 13.5% of the shares post-IPO. Funds affiliated with Fidelity Investments will hold 12.5% of the shares after converting convertible bonds into common stock. Glide Healthcare, a healthcare investment company based in the Netherlands, will hold 11.4%, and Lightstone Ventures will hold 8.1%.

The IPO is being underwritten by Morgan Stanley, Goldman Sachs Group, and PJT Partners. Shoulder Innovations plans to list on the New York Stock Exchange under the ticker symbol "SI".