The company's offering was oversubscribed despite the absence of an underwriter and institutional tender.
BreathID Ltd. raised NIS 22 million in its IPO on the Tel Aviv Stock Exchange (TASE) on Monday. The company initially aimed to raise NIS 10 million, but later raised its target for the offering, which was oversubscribed by 37%, despite the absence of an underwriter for the offering and an institutional tender.
BreathID has developed non-invasive devices for diagnosis of gastrointestinal diseases through the analysis of patients' breath. The company has already recorded sales for its first product, one that recognizes H-pylori bacteria, a main cause of ulcers. BreathID has also developed devices for diagnosing Hepatitis B and C as well as Non Alcoholic Fatty Liver Disease. These are currently undergoing clinical trials and are due to reach by the market by the end of the year.
BreathID was initially founded as a division within Oridion Systems Ltd. (SWX: ORIDN), which invested $30 million in it, but ultimately decided to spin it off as an independent company after it failed to progress as expected. The company initially received investment from Hadasit Bio Holdings Ltd. (TASE:HDST). Prior to the IPO, the company gave Perrigo Company (Nasdaq:PRGO; TASE:PRGO) controlling shareholder Murray Arkin an option to buy shares for a total of NIS 12 million.
Published by Globes [online], Israel business news - www.globes.co.il - on June 7, 2007
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