(Updates with initial market capitalization, use of proceeds,
details of business)
NEW YORK Oct 16 TranS1 Inc, a company that
develops products for sufferers of lower back pain, raised
$82.5 million in an initial public offering on Tuesday, above
The offering of 5.5 million shares sold for $15 per share,
compared with a forecasted range of $12 to $14, according to an
The company, which specifically develops treatments for the
degeneration of the spine, is expected to begin trading its
shares on Nasdaq on Wednesday under the symbol "TSON."
It said it intends to use proceeds from the offering for
sales and marketing, and to support research, development and
the costs of seeking regulatory approval for some products.
Some of the company's products are commercially available
in the United States, or Europe, while others are still in the
process of winning regulatory approvals.
Based on its offering price, the Wilmington, North Carolina
company will have an initial market capitalization of $281.5
For the six months ended June 30, TranS1's revenue more
than tripled to $7 million from $2.2 million during the same
period a year earlier. The company's net loss of $4 million
compared with a loss of $4.6 million during the half-year
period in 2006.
In an amended filing with the U.S. Securities and Exchange
Commission, TranS1 said it expects the market for its products
to grow to $1.8 billion by 2011, from $1.4 billion last year,
based on projections by Millennium Research Group. And the rise
of minimally invasive spine procedures, such as those the
company is developing, could accelerate market growth, it said
in its filing.
Underwriters, led by Lehman Brothers and Piper Jaffray have
the option to purchase an additional 825,000 shares to cover
(Reporting by Lilla Zuill)