MiniMed (Nasdaq:MMED) announced today that it completed its previously announced initial public offering (IPO).
Shares of MMED began trading on Friday, March 6, following the pricing of the IPO that day. They closed today, March 9, down 2.7% at $18 apiece. (Stock markets in general are having a rough week as the Iran war causes oil prices to shoot up.)
Our sister site, Drug Delivery Business News, reports today that the Medtronic Diabetes unit priced its IPO at $20 per share, offering 28 million shares of common stock, amounting to $560 million. With the addition of an option to purchase more shares, the total could have reached $644 million, but, according to an SEC filing today, it appears that the option was not exercised. The company said in a news release that net proceeds totaled approximately $538 million after deducting underwriting discounts and commissions and estimated offering expenses.
MiniMed said that it retained $309 million of the net proceeds from the IPO. As of today, it has approximately $350 million in cash on hand. It plans to use that cash for general corporate purposes and to repay intercompany debt owed to Medtronic. As a result of the IPO, Medtronic currently owns approximately 90.03% of the outstanding shares of common stock. That was the total expected if the underwriters didn’t exercise the option to buy more shares.
Get the full story at our sister site, Drug Delivery Business News.
