Eargo, which manufactures differentiated hearing aid systems, announced terms for its IPO on Friday.
The San Jose, CA-based company plans to raise $100 million by offering 6.7 million shares at a price range of $14 to $16. At the midpoint of the proposed range, Eargo would command a fully diluted market value of $616 million.
Eargo believes its hearing aids are the first and only virtually invisible, rechargeable, completely-in-canal, FDA regulated, exempt Class I device for the treatment of hearing loss. The company has sold over 42,000 hearing aid systems, net of returns, as of June 30, 2020.
Eargo was founded in 2010 and booked $47 million in revenue for the 12 months ended June 30, 2020. It plans to list on the Nasdaq under the symbol EAR. J.P. Morgan, BofA Securities, Wells Fargo Securities and William Blair are the joint bookrunners on the deal.
