Outset Medical, the US-based dialysis technology producer advacing research from Oregon State University, closed its initial public offering at approximately $278m yesterday.
The company floated on Wednesday, issuing 8.95 million shares on the Nasdaq Global Select Market at $27 each to raise an initial $242m. The shares, already priced above the IPO’s $22 to $24 range, closed at $58.02 yesterday.
Joint lead book-running managers BofA Securities, Morgan Stanley and Goldman Sachs, and co-managers SVB Leerink and Stifel have taken up the option to buy more than 1.34 million more shares, and Outset is now valued at approximately $2.47bn.
Outset has developed a haemodialysis system that can perform dialysis using only tap water and an electrical outlet. It is putting the proceeds from the offering into upgrading its sales and customer support along with its research and development activities.
The company’s largest shareholder, private equity firm Warburg Pincus, now owns a 21% stake, followed by investment and financial services group Fidelity (11.1%), D1 Capital (9%), T. Rowe Price (8.7%), Mubadala Investment (6.8%), Partner Fund Management (5.6%) and Perceptive Advisors (4.9%).
The IPO followed $434m in funding from investors also including medical device maker Baxter’s corporate venturing unit, Baxter Ventures, as well as Vertical Group. Baxter Ventures took part in Outset’s $132m series D round in August 2018 and its $125m series E in February this year.
– A version of this article first appeared on our sister site, Global Corporate Venturing.

Outset Medical, the US-based dialysis technology producer that counts medical device maker Baxter International among its investors, closed its initial public offering at approximately $278m yesterday.

The company floated on Wednesday, issuing 8.95 million shares on the Nasdaq Global Select Market at $27.00 each to raise an initial $242m. The shares, already priced above the IPO’s $22 to $24 range, closed at $58.02 yesterday.

Joint lead book-running managers BofA Securities, Morgan Stanley and Goldman Sachs, and co-managers SVB Leerink and Stifel have taken up the option to buy more than 1.34 million more shares, and Outset is now valued at approximately $2.47bn.

Outset has developed a haemodialysis system that can perform dialysis using only tap water and an electrical outlet. It is putting the proceeds from the offering into upgrading its sales and customer support along with its research and development activities.

The company’s largest shareholder, private equity firm Warburg Pincus, now owns a 21% stake, followed by investment and financial services group Fidelity (11.1%), D1 Capital (9%), T. Rowe Price (8.7%), Mubadala Investment (6.8%), Partner Fund Management (5.6%) and Perceptive Advisors (4.9%).

The IPO followed $434m in funding from investors also including Baxter’s corporate venturing unit, Baxter Ventures, as well as Vertical Group. Baxter Ventures took part in Outset’s $132m series D round in August 2018 and its $125m series E six months later.

Photo courtesy of Outset Medical.