The IPO Buzz: Kestra Medical (KMTS) Prices Upsized IPO at $17 – $1 Above Range

Kestra Medical Technologies, Ltd.  (KMTS), the maker of a wearable cardioverter defibrillator, priced its upsized IPO at $17.00 – $1.00 above the top of its range – and sold 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 is expected to start trading today – Thursday, March 6 – on the NASDAQ. 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:

• 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.
• 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. (For more information about these companies, please check the IPO Calendar and the individual IPO Profiles found on the IPOScoop.com  website.) Note: Never trade on proposed symbols. They have been known to change and you might buy something on the OTC Bulletin Board. To see what time the NASDAQ IPOs are expected to trade, please log in to: NASDAQTrader.com then scroll down to IPO Message. Disclosure: Nobody on the IPOScoop.com staff has a position in any stocks mentioned above, nor do they trade or invest in IPOs. The IPOScoop.com staff does not issue advice, recommendations or opinions. Disclaimer: A SCOOP Rating (Wall Street Consensus of Opening-day Premiums) is a general consensus taken, at press time, from Wall Street and investment professionals concerning how well an IPO might perform when it starts trading. The SCOOP Rating does not reflect the opinions of anyone associated with IPOScoop.com. The SCOOP ratings should not be taken as investment advice. The rating merely reflects the opinion of the professionals at the time of publication and is subject to last-minute changes due to market conditions, changes in a specific offering and other factors, such as changes in the proposed offering terms and the  shifting of investor interest in the IPO. The information offered is taken from sources we believe to be reliable, but we cannot guarantee the accuracy.