TPG-backed CeriBell seeks up to $578 mln valuation in upsized US IPO (updated)

Bicara Therapeutics

09/10/2024 12:56

* 
      CeriBell offering 10.6 mln shares vs 6.7 mln earlier
    

        * 
      Lifts IPO price range to $16-$17 each from $14-$16
    

        * 
      Some existing investors may buy shares worth up to $40 mln
    

  
 (Adds background and details on company and IPO in paragraphs
6,7 and 9-12)
       Oct 9 (Reuters) - TPG-backed CeriBell is targeting as
much as $578.3 million valuation in its upsized initial public
offering in the United States, the medical device maker said on
Wednesday, indicating robust investor optimism for healthcare
startups.
    September was the busiest month for healthcare IPOs this
year, Dealogic data showed. The momentum has spilled into
October, with three companies from the industry, including
CeriBell, set to go public in the coming days.
    Recent strong debuts by weight-loss drug developer BioAge
Labs  BIOA.O  and TPG-backed cancer therapy developer Bicara
Therapeutics  BCAX.O , among others, have also bolstered
investor confidence in the sector and encouraged listings among
other IPO candidates.
    CeriBell, backed by alternative asset manager TPG's  TPG.O 
The Rise Fund, is now aiming to raise as much as $180.3 million
by offering about 10.6 million shares at $16 to $17 each.
    The Sunnyvale, California-based company had earlier planned
to sell 6.7 million shares priced between $14 and $16 each.
    Founded in 2014 as Brain Stethoscope, CeriBell makes
artificial intelligence-powered brain monitoring system to
detect neurological conditions.
    The company currently sells its device, known as CeriBell
System, in the United States and plans on pursuing additional
regulatory clearances in Europe within two to four years of the
IPO.
    Certain existing shareholders have indicated an interest in
purchasing up to about $40 million worth of CeriBell shares at
the IPO price.
    They include TPG's The Rise Fund, investment manager Ally
Bridge Group and venture capital firms Longitude Capital and Red
Tree.
    The IPO proceeds will be used to expand sales and marketing,
apart from funding research and product development activities.
    CeriBell will list on the Nasdaq Global Market under the
trading symbol "CBLL".
    BofA Securities, J.P. Morgan, William Blair, TD Cowen and
Canaccord Genuity are the underwriters for the offering.

 (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by
Shilpi Majumdar)
 ((ArasuKannagi.Basil@thomsonreuters.com;))