By Eric Fetters
Herald Writer
BOTHELL — Quinton Cardiology Systems Inc. estimates the stock price for its initial public offering later this month will be $13 to $15 a share, raising up to $52.5 million for the medical equipment company.
The IPO is expected to take place the week of April 15, although Quinton executives couldn’t provide any specific date.
Specific terms for the offering were set Monday in documents filed with the Securities and Exchange Commission. Quinton, based in Bothell, first announced in February its intention to become a public company.
If the offering is approved, the company will trade on the Nasdaq market under the symbol QUIN. Quinton develops, manufactures and markets equipment used in the diagnosis, treatment and rehabilitation of heart disease patients.
In its stock sale, the company will offer 3.5 million shares to investors, according to the SEC filing. After the offering, Quinton will have 10.8 million shares outstanding.
The proceeds would allow Quinton to fund more research and development efforts, expand international sales and repay debt, in addition to covering general corporate expense, according to the company. Last year, it reported a net loss of $7.2 million on revenues of nearly $43 million.
Adams Harkness &Hill Inc., W.R. Hambrecht &Co. and Delafield &Hambrecht Inc. are underwriters for the stock offering. W.R. Hambrecht also is the company’s largest shareholder and will own nearly 47 percent of the stock after the public offering.
While the past year has been slow for stock offerings in general, the health technology sector has been relatively active. Since the end of September, seven medical equipment and supply companies besides Quinton have raised funds through initial stock offerings, according to IPO Monitor.
Once Quinton completes its IPO, it will become the 16th public company based in Snohomish County.
You can call Herald Writer Eric Fetters at 425-339-3453 or send e-mail to fetters@heraldnet.com.
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