Renaissance Capital logo

Epilepsy device maker NeuroPace set to begin trading on Thursday after CFIUS delay; priced an upsized IPO at $17 high end

April 22, 2021

NeuroPace, which makes a brain-responsive neuromodulation system for drug-resistant epilepsy, is expected to begin trading on the Nasdaq on Thursday. The company raised $102 million in its IPO by offering 6.0 million shares at $17, the high end of the range of $15 to $17. The company offered 0.7 million more shares than anticipated. At pricing, NeuroPace commands a fully diluted market value of $445 million.  

The company had been scheduled to trade on Wednesday, but noted in an FWP that after its registration statement was declared effective by the SEC, it received an inquiry from the US Treasury related to the Committee on Foreign Investment in the United States (CFIUS). In a form POS AM, the company noted the inquiry under the risk section related to litigation, and stated that it had no additional information to disclose as to the substance of the inquiry.

NeuroPace states that its novel and differentiated RNS System is the first and only commercially available, brain-responsive neuromodulation system that delivers personalized, real-time treatment at the seizure source. Its RNS System is also the only commercially available device that records continuous brain activity data and allows clinicians to monitor patients not only in person, but also remotely. As of December 31, 2020, over 3,000 patients have received NeuroPace's RNS System.

The company booked revenue of $41 million in 2020, up 11% from the prior year period, with a gross margin of 73.6% and an EBITDA margin of -27.6%.

The Mountain View, CA-based company plans to list on the Nasdaq under the symbol NPCE. J.P. Morgan, Morgan Stanley and Wells Fargo Securities acted as lead managers on the deal.