Twiggy-backed CurveBeam AI opens books for $154m float

afr.com:

Medical imaging business CurveBeam AI, which has assembled an impressive register via its pre-IPO rounds, opened the books on an initial public offering on Tuesday.

CurveBeam AI CEO Greg Brown. Dan Peled

CurveBeam is looking to raise $25 million for a $153.7 million market capitalisation at listing.

The offer is priced at 48¢ a share for a roughly 25 per cent float. Investor meetings began on Monday and the books would shut on 2pm Thursday. The company is slated to list on August 23.

CurveBeam combines weight-bearing CT imaging equipment with artificial intelligence to target improved assessments for orthopaedics and bone health. It has 170 odd devices deployed across the world with institutions like US hospital chain Mayo Clinic.

It is cleared by the US Food and Drug Administration, has 37 granted patents internationally (27 applied) and has a co-marketing and distribution agreement with NYSE-listed Stryker Corporation, according to a presentation being shown to potential investors.

Financials shared with fund managers said CurveBeam AI’s pro forma forecasts are for $11 million revenue and negative $15.3 million EBITDA for the 2023 financial year.

It reported $7.2 million revenue and $5.9 million earnings in the 2021 financial year. The company reckons it’s got a $10 billion-plus addressable market and would be able to hit gross margins as high as 90 per cent from its AI modules.

Potential backers were told while COVID-19 had slowed down sales, the partnership with Stryker’s foot and ankle division would start to grow revenue this calendar year, and reimbursement schemes for CT scans in the US and Germany would provide a tailwind to expansion.

The bulk of the IPO proceeds were earmarked for sales and marketing which