Glaukos Recounts IPO Roadshow
Glaukos completed its IPO on June 25, 2015, but the road getting there was a long one. Before going public, the company that was founded in 2001 raised more than $150 million of enterprise capital in six rounds of financing. It was the first to enter into the micro-invasive glaucoma surgery (MIGS) space, and began preparing to become a public company in early 2014.
Taking a firm public involves working with select bankers and key advisors (Glaukos opted to work with five bankers), expanding the number of seats for the board of directors, and preparing for life as a public company (including quarterly financial reports, ongoing public disclosures, and compliance with securities laws and regulations). There’s also timing – three companies went public on June 25, 2015, and seven went public that week.
In preparation for its IPO, Glaukos met with advisors but had difficulty agreeing on an opening price (eventually settling on $18, $3 above the IPO range). On opening day shares rose 70%, the company sold 6.9 million newly issued shares, and it raised $113.6 million in net proceeds, “$30 million more than we had planned if we had opened at the suggested price,” chief commercial officer Chris Calcaterra said.
The company’s “road show” entailed its executives talking to numerous investors to explain strategy, potential, competitive strengths, and potential success factors. Glaukos’ execs covered nine cities in seven days, and found “strong institutional investor interest” because its novel technology platform addresses a true unmet medical need, Calcaterra said.
Wall Street continues to look favorably on Glaukos and on the MIGS category as a whole; the company’s 52-week low was $14.25, its 52-week high was $33.92.
“Glaucoma used to be a backwater disease entity from a surgeon’s perspective; MIGS has changed that,” Calcaterra said, due in large part to Glaukos.
Chris M. Calcaterra has served the Chief Commercial Officer for Glaukos Corporation since April 2008.