Hearing device developer Eargo announced today that it priced its initial public offering of common stock at approximately $141.3 million.
Beginning trading on the Nasdaq market today under the EAR ticker, shares were trading up 102.22% at $36.40 per share in late-afternoon trading.
San Jose, Calif.-based Eargo is offering more than 7.85 million shares of its common stock at $18 per share. Additionally, it has granted underwriters a 30-day option to purchase up to nearly 1.2 million more shares at the IPO price, according to a news release.
Gross proceeds from the offering are expected to reach $141.3 million, excluding the exercise of the underwriters’ option to purchase additional shares. Eargo expects to close the offering on Oct. 20, subject to customary conditions.
J.P. Morgan and BofA Securities acted as lead book-running managers and as representatives of the underwriters for the offering. Wells Fargo Securities and William Blair acted as co-managers for the offering.
Eargo develops a virtually invisible, rechargeable, completely-in-canal, FDA-regulated exempt Class I hearing aid, along with an online hearing screening and telecare consultation and support. In July, the company closed a $71 million financing round to boost its commercialization efforts for the technology.