Kestra Medical Technologies, Ltd. (KMTS), the maker of a wearable cardioverter defibrillator, priced its IPO at $17.00 – $1.00 above the top of its range – and upsized the deal at pricing to 11.88 million shares – up from 10.0 million shares in the prospectus – to raise about $202 million on Wednesday night, March 5, 2025. Kestra Medical’s initial public offering goes into the books as the first big IPO in March 2025. Kestra Medical’s stock scored a 35 percent gain – opening at $22.95 – up $5.95 from its $17.00 IPO price – in its NASDAQ debut today – Thursday, March 6, 2025 – on volume of 581,907 shares. It’s worth noting that Kestra Medical’s NASDAQ debut came on the same day of a sharp sell-off in the overall U.S. stock market that drove the NASDAQ Composite Index down more than 10 percent from its record high in December 2024.
Kestra Medical’s stock closed at $21.84 – up $4.84 or 28.47 percent from its IPO price – on NASDAQ in its first day of trading. Volume was about 3.92 million shares.
BofA Securities, Goldman Sachs and Piper Sandler led the joint book-running team, which included Wells Fargo Securities and Stifel.
At pricing, Kestra Medical Technologies, Ltd. had a market cap of $842.07 million.
Kestra Medical’s IPO raised about 35 percent more than expected under the terms in its SEC filings. The IPO’s terms were 10 million shares at a price range of $14.00 to $16.00 to raise $150.0 million, if priced at the $15.00 mid-point of its range, according to the prospectus.
Bain Capital, the principal shareholder, will own 52.5 percent of the outstanding stock after the IPO. Kestra Medical was founded as a start-up in 2014 with backing from Bain Capital.
Kestra Medical Technologies, Ltd. , based in Kirkland, Washington, received FDA approval in July 2021 for its Assure WCD, a wearable cardioverter defibrillator. The company says that as of Jan. 31, 2025, doctors at more than 550 hospitals have prescribed Kestra’s Assure WCD and the device has been worn by more than 17,000 patients, according to the prospectus.
The company plans to use the IPO’s proceeds to further commercialize its Assure WCD and its cardiac recovery system platform. In the prospectus, Kestra Medical said its platform “integrates monitoring, therapeutic treatment, digital health and patient support services into a single unified solution.”.
Kestra Medical’s huge revenue growth in 2024, compared with 2023, was part of its appeal, the IPO pros say. The numbers tell the story:
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For the six months that ended Oct. 31, 2024, Kestra Medical generated revenue of $27.5 million – up from $9.5 million for the same period in 2023.
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For the fiscal year that ended April 30, 2024, Kestra Medical generated revenue of $27.8 million – up from $7.6 million for the previous fiscal year.
The bottom line, though, showed red ink. Kestra Medical reported a net loss of $84.8 million on revenue of $45.8 million, for the 12 months that ended Oct. 31, 2024, according to financial statements in the prospectus.
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