Medical-device firm Mainstay aims to raise up to €23m in IPO

10 Apr 2014

Irish medical-device maker Mainstay Medical, which makes devices to alleviate lower back pain, is planning to raise up to €23m via a dual-listing on the Irish Stock Exchange and the Euronext exchange in Paris. The flotation will value the company at around €128m.

The company has operations in Ireland, Australia and the US.

Institutional trading of the company’s shares will begin today at 9am CET.

The company is focused on the development of ReActiv8, an implantable medical device designed to treat people with CLBP (chronic low back pain).

The company is issuing 851,175 new ordinary shares representing an indicative amount of €20m that can be potentially increased up to 978,851 new ordinary shares representing an indicative total amount of €23m.

The flotation will provide Mainstay with the capital it needs to conduct clinical trials, initially in Australia and then in Europe.

The company also intends to submit an application for CE mark approval for its devices.

Mainstay’s major institutional shareholders Sofinnova Partners, Fountain Healthcare Partners, Medtronic, Capricorn Venture Partners and Seventure Partners have committed to invest up to €8m in the IPO.

“We believe that ReActiv8 offers an innovative therapy for the millions of people who suffer from chronic low back pain and proceeds from the offer will be used to achieve the necessary regulatory approvals and to advance the commercialisation of ReActiv8,” said Dr Oern Stuge, Mainstay Medical’s chairman.

“We have recently commenced clinical trials and have a clear plan to obtain regulatory approval for our innovative therapy.”

Back pain image via Shutterstock

John Kennedy is a journalist who served as editor of Silicon Republic for 17 years