TELA Bio, which sells soft tissue implants used in hernia repair and reconstructive surgery, announced terms for its IPO on Tuesday.
The Malvern, PA-based company plans to raise $60 million by offering 4 million shares at a price range of $14 to $16. Insiders intend to purchase $10 million worth of shares in the offering. At the midpoint of the proposed range, TELA Bio would command a fully diluted market value of $165 million and an enterprise value of $123 million (11x LTM sales).
The company recorded $7 million in sales for the 1H19, up 83% y/y. 1H19 gross margin grew 41 points y/y to 56%, and EBITDA margin grew 117 points to -140% in the same period.
TELA Bio was founded in 2012 and booked $11 million in sales for the 12 months ended June 30, 2019. It plans to list on the Nasdaq under the symbol TELA. Jefferies and Piper Jaffray are the joint bookrunners on the deal. It is expected to price on Thursday, November 7, 2019.
