EndoStim, which is developing a neurostimulator that treats gastroesophageal reflux disease (GERD), announced terms for its IPO on Tuesday. The St. Louis, MO-based company plans to raise $35 million by offering 3.2 million shares at a price range of $10 to $12. At the midpoint of the proposed range, EndoStim would command a fully diluted market value of $99 million.
EndoStim has entered pivotal-stage trials in the US for its device, which stimulates a patient's dysfunctional lower esophageal sphincter to reduce GERD, which causes stomach contents to enter the esophagus. It received the CE Mark in 2012 and the next year began commercializing its devices in Europe. EndoStim will initially target a subset of GERD patients who experience symptoms while on medication, which the company claims represents 5% of all GERD patients, or 21 million people worldwide.
Primary shareholders include Chairman Douglas French, Director Jeffrey McDonnell and Prolog Capital.
Another neurostimulator company, NeuroSigma (NSIG), recently launched a $50 million IPO expected to price during the week of October 6, 2014.
EndoStim, which was founded in 2009 and booked $520,000 in sales for the 12 months ended June 30, 2014, plans to list on the NASDAQ under the symbol STIM. Wedbush PacGrow is the sole bookrunner on the deal.
