Alma Lasers Ltd. has entered the race to be the first Israeli IPO on Nasdaq in 2008, alongside contenders CopperGate Communications Ltd. and Runcom Technologies Ltd. On December 31, 2007, aesthetic surgery equipment maker Alma Lasers filed Form S-1 Registration Statement with the US Securities and Exchange Commission (SEC).
The company, which was founded eight years ago, will reportedly raise up to $75 million at a company value of $200-250 million, or possibly even higher. The offering will also reportedly include an offer to sell by existing shareholders. The company did not disclose any details about the number of shares or the price range for the offering, but said that it plans to be traded under the ticker "ALMA".
Alma Lasers said in the prospectus that Citi and UBS will be the joint bookrunning managers and that William Blair & Company and Jefferies & Company will be the lead managers for the offering.
Alma Lasers said in its prospectus that it has sales in 64 countries, and that the US accounts for 47% of total sales. It posted a net profit of $15.3 million on $62 million revenue in January-September 2007, compared with a net loss of $6 million on $62.3 million sales in 2006.
The company noted, "Our industry is subject to intense competition. Our products compete against energy-based aesthetic devices offered by public companies." The company also listed several competitors. The Israeli competitors include Lumenis Ltd. (Pink Sheets:LUME.PK) and Syneron Medical Ltd. (Nasdaq: ELOS), Radiancy Inc., and UltraShape Ltd. The non-Israeli competitors include Candela Corporation (Nasdaq:CLZR), Cutera Inc. (Nasdaq:CUTR), Cynosure Inc. (Nasdaq:CYNO), Palomar Medical Technologies Inc. (Nasdaq:PMTI), Thermage, Inc. Aesthera Corp., Reliant Technologies, and Sciton Inc.
Alma Lasers added it was currently involved in two separate legal proceedings by Lumenis and Thermage over intellectual property rights.
The company also warned, "We have identified material weaknesses in our internal control over financial reporting. If we fail to maintain proper and effective internal control, our ability to produce accurate financial statements could be impaired, which could adversely affect our operating results, our ability to operate our business and our stock price."
TA Associates Ltd. acquired control of Alma Lasers in 2006, and owns 73.3% of the company.
Published by Globes [online], Israel business news - www.globes-online.com - on January 2, 2008
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