TNDM shares opened and $19.40 apiece, 29.3% ahead of the $15-per-share price Tandem assigned yesterday, peaking at $20.20 before subsiding to $19.35 as of about 10:40 a.m.
That sets Tandem up to raise more that the $120 million pricing; if it were to sell all 8 million shares at the $19.40 price the IPO would raise more than $155 million. And that doesn’t account for a 1.2 million-share over-allotment for the offering’s underwriters, which if exercised would push the raise even higher. Shares are expected to begin trading today under the TNDM symbol.
San Diego-based Tandem said the offering is expected to run until Nov. 19. The company, which makes the the touch-screen t:slim insulin delivery system, 1st estimated that the offering would raise $120 million when it filed for the IPO last month.
The t:slim device won FDA clearance in November 2011. Tandem calls t:slim the "slimmest and smallest durable insulin pump on the market," touting it as being designed to slide easily into a pocket.
"Based on extensive consumer input during development, we believe t:slim addresses both the embarrassment and functionality concerns related to the size and inconvenience of carrying a traditional pump," according to the registration statement. Last week Tandem said the IPO would be priced at $13-$15 per share.
Tandem posted its 1st revenues in 2012, reporting nearly $2.5 million in sales for the fiscal year ended December 31. Losses amounted to about $33 million, or $104.93 per share.