R Capital’s LDR Medical floats on Nasdaq

LDR's shares began trading on 9 October under the ticker symbol "LDRH". The company sold 5 million shares at a price of $15 per share for its IPO, with an over-allotment option of 750,000 shares at $15 per unit, which the underwriters exercised on 10 October.

LDR initially filed confidentially for the IPO in June this year. Piper Jaffray, William Blair and Bryan Garnier & Co acted as joint bookrunners for the flotation, while Cowen, JMP Securities and Stephens acted as co-managers.

Following the flotation, R Capital – which is part of Rothschild Group – will remain LDR's largest shareholder. Alongside R Capital, LDR is backed by Austin Ventures, PTV Sciences and Telegraph Hill Partners.

Prior to the IPO, R Capital held a 21.1% stake in LDR, while Austin owned 18.3%, via its Austin Ventures VIII fund, Telegraph Hill owned 17.3% and PTV owned 11.3%.

Following the issuance of converted preferred stock to ordinary stock by LDR for its IPO, R Capital now holds a diluted stake of 16.4% while Austin holds 14.3%, Telegraph Hill 13.5% and PTV 8.8%.

LDR plans on using the proceeds from the IPO to finance the production and marketing of its new product, which received approval from the US Food and Drug Administration (FDA) last year. The company also plans on repaying the debt facility that was supplied to the company by Escalate Capital Partners, according to LDR's Securities and Exchange Commission (SEC) S-1 filing.

Company
Founded in 2000, LDR has its European headquarters in Troyes, France, as well as US headquarters in Austin, Texas, and additional offices in Sao Paulo, Seoul and Beijing. The company recorded revenues of $90.9m in 2012, as well as an EBITDA of $1.2m.

LDR designs and develops spinal implant devices, which are designed to make procedures involving spinal surgery easier to perform. The company's recently FDA-approved product, the Mobi-C cervical disc replacement device, is designed to replace artificial discs in the vertebral column for damaged ones, with the aim of maintaining spinal mobility and preventing further degeneration in other vertebral discs.

People
CEO Christophe Lavigne, executive vice president of research and development Hervé Dinville and general manager Patrick Richard are the founders of LDR. Pierre Rémy is a managing partner at R Capital.

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