LDR Holdings IPO Posts Gains in First Day of Trading

The annual meeting of the North American Spine Society (NASS) always brings with it a flurry of new product announcements from manufacturers. This year’s meeting in New Orleans, La. (Oct. 9-12) is no different. Companies typically use the industry gathering to showcase new products and services. On Wednesday, Oct. 9, one of the hottest topics wasn’t the rollout of a new product, but a new stock offering. Austin, Texas-based spine company LDR Holding Corp. went from being privately held to publicly traded.

The pricing of its initial public offering (IPO) of five million shares of common stock was $15 per share (the middle of the expected $14-$16 range)—traded on Nasdaq under the ticker symbol “LDRH” and raised $75 million before expenses. The offering is expected to close on Oct. 15. 

Company executives couldn’t say too much about this latest milestone in the company’s growth—they’re still under the requisite quiet period. But the IPO is the most recent piece of good news from a company that’s had a good summer. LDR recently received approval from the U.S. Food and Drug Administration (FDA) for the Mobi-C cervical disc replacement device, the first and so far the only cervical disc replacement device to receive FDA approval to treat both one-level and two-level cervical disc disease. The company’s two main technologies are the Mobi-C and the VerteBRIDGE fusion implant for the lumbar spine.

The first day as a publicly traded company ended on a very positive note—up 29 percent to $19.35 at the close of trading. At one point the shares reached a high of $20.47. The offering is expected to close on Oct. 15.

The underwriters of the IPO will have an option to buy another 750,000 shares to cover any over-allotments.

Last year, LDR posted a $9.7 million loss on $91.9 million in revenue. Through the end of the second quarter this year, the company posted a $4.8 million loss on $52.4 million in revenue.

LDR was founded in Troyes, France. In addition to its Austin headquarters, the company has regional offices in Germany, Spain, China, South Korea and Brazil.