Lumenis Ltd. raised a gross $75 million in its IPO on Nasdaq, in its return to the capital market, well below the $94-106 million it had sought to raise. The developer of lasers for surgical, ophthalmic and aesthetic procedures issued 6.3 million shares at $12 per share, less than its target range of $15-17. The offering gives a market cap of $423 million after money, compared with the expected midpoint valuation of $564 million.
The underwriters, Goldman Sachs, Credit Suisse, Jefferies, and Wells Fargo have an overallotment option to buy up to 937, 000 shares, which if exercised, will boost the gross proceeds by $11.2 million.
Despite the lower than expected valuation, Lumenis’s shareholders will make a handsome return on their investment, if they sell their shares. Its largest shareholders, Viola Private Equity and XT Hi-Tech (formerly Ofer Hi-Tech), will own 38% and 26% of the company, respectively after the IPO. They bought their stakes in Lumenis at a valuation of $160 million, and are making a 2.6-fold return on their investment, albeit only a paper return at this time.
Lumenis posted a net profit of $17 million on $265.4 million revenue in 2013, 7% more than in 2012. It owes Bank Hapoalim (TASE: POLI) $63.6 million, which weighs on its balance sheet. Although it had $42.8 million in cash before the IPO, its cumulative debt of $597.4 million reduced its shareholders’ equity to just $17 million. Lumenis’s CEO is Tzipi Ozer-Armon and its chairman, Harel Beit-On is a founder and general partner of Viola Private Equity.
Published by Globes [online], Israel business news – www.globes-online.com