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.
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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