This article initially reflected the figures put forth in the company’s prospectus filed on Aug. 6. Heartflow has since upsized its IPO and the figures were updated on Friday, Aug. 8.
Heartflow has priced its previously announced initial public offering (IPO), with proceeds expected to total more than $300 million.
Last month, the company filed an S-1 registration form with the SEC, signaling its intent to IPO. In an amendment to the form filed this week, the developer of AI-enabled fractional flow reserve computed tomography (FFRCT) and Plaque Analysis technology set the price for the offering.
Mountain View, California-based Heartflow is offering nearly 16.7 million shares of its common stock in the IPO. It priced the upsized offering at $19 per share, meaning the highest potential total proceeds come in at about $316.7 million.
The initial prospectus said Heartflow expects $265.8 million in proceeds at the midpoint of its offering price. The IPO also grants underwriters the option to purchase up to 2.5 million additional shares.
With the IPO, the company expects to use proceeds remaining after the payment of $50 million to $55 million of indebtedness to fund sales and marketing, fund R&D and for other general corporate purposes. Proceeds may also go toward acquiring complementary businesses, products, services or technologies.
Heartflow said that its R&D plans with the proceeds include three main areas. First, it hopes to invest in new products to drive greater efficiency and reduce manual involvement. It also aims to fund new features that enhance the clinical utility and ease of use of existing products. Finally, it hopes to generate new clinical evidence to support expanded indications for its Heartflow platform.
The company’s FFRCT Analysis and coronary computed tomography angiography (CCTA), provide an alternative to traditional ischemia testing methods. It non-invasively diagnoses CAD and offers guidance on subsequent treatment decisions. The AI-powered technology provides insights into each patient’s condition with a patient-specific model of the heart’s blood flow. It also has a median turnaround time registering less than 1.5 hours.
Heartflow is the latest IPO in medtech resurgence
As this deal moves forward, it marks yet another recent case of a medtech company going the IPO route.
Wearable defibrillator maker Kestra Medical completed a $202 million IPO in March, while Beta Bionics went public in January with a $204 million IPO. Last year, heart valve company Anteris Technologies and neurotech company CeriBell completed IPOs. Additionally, medtech distribution giant Medline submitted a draft registration to the SEC related to a proposed IPO in December. AI-powered spine surgery company Carlsmed launched its IPO road show last week.
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