Foamix sets terms for $71m Nasdaq IPO

Nasdaq
Nasdaq

Foamix integrates its foam technology with existing drugs used to treat skin diseases like acne.

Foamix, which develops foam-based drugs, today revised its prospectus for its upcoming IPO on Nasdaq. The company expects to raise $71 million (up to $81 million if the underwriters exercise their options) at a company value of $239 million, after money. The Rehovot-based company plans to offer 6 million shares at a price range of $10 to $12.

The underwriters for the offering, scheduled for September 18, are Barclays Investment Bank, Cowen, Oppenheimer, and Maxim Group.

Foamix integrates its foam technology with existing drugs used to treat skin diseases like acne in order to make it easier to use the drugs. The company is developing its own products on the basis of antibiotic foam, and also cooperates with other pharmaceutical companies. Since its founding, the company has earned $14.1 million in revenue, including $2 million in the first half of 2014, when its loss totaled $3.4 million.

Following the IPO, if the desired price is indeed obtained, the company founders, CEO Dov Tamarkin and chairman and COO Meir Eini, will each own 15% of the company, worth $35.8 million on paper. The offering is also likely to enrich the private investors in the company: Eri Steimatzky, whose holding will be worth $20.2 million; businessman Benny Shabtai, whose holding will be worth $15.5 million; and diamond merchant Chaim Chzic, whose holding will be worth $12.2 million, providing that the IPO goes as planned.

The wave of Israeli biomedical offerings in the second half of 2014 will be inaugurated next week by ReWalk, maker of the exoskeleton device, which enables people with paralyzed legs to walk upright. The company has revised its prospectus, and now plans to raise $50.3 million at a company value of $172.5 million, after money. The underwriters for the issue will be Barclays Investment Bank, Jeffreys, and Concorde. The IPO is scheduled for September 12.

Published by Globes [online], Israel business news - www.globes-online.com - on September 4, 2014

© Copyright of Globes Publisher Itonut (1983) Ltd. 2014

Gali Weinreb and Shiri Habib-Valdhorn
 
 
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