Financings in Brief: ResMed
This article was originally published in The Gray Sheet
Executive Summary
ResMed: Obstructive sleep apnea (OSA) treatment products firm expects to net about $24-$25 mil. from initial public offering, assuming the exercise of overallotments by underwriters Robertson Stephens & Co., William Blair & Co. and Nonumura Securities. The Australia-based firm's stock began trading June 2 on NASDAQ in conjunction with an offering of 3 mil. shares at $11 per share. Of the shares, 2 mil. were sold by the company, and 1 mil. were offered by selling shareholders. The company plans to use the bulk of the proceeds for working capital. In addition, about $1 mil. is earmarked for expanding manufacturing, and another "portion" may be used to expand sales, marketing and distribution capabilities. ResMed, known before the offering and outside the U.S. as ResCare, offers a number of air flow generators and accessories for the treatment of OSA. For the six months ended Dec. 31, the company reported net income of $1.1 mil. on $10.4 mil. in revenues.