‘Unlike burritos’: Why new ASX medtech Tetratherix downsized its IPO
CEO Will Knox has taken the unusual step of scaling back the startup’s IPO by $10 million to dodge ‘fast money’ investors that lack understanding of the business.
Most companies raising capital through initial public offerings dream of overwhelming investor demand. Will Knox had the opposite problem: too much interest from the wrong type of investor.
The chief executive of Sydney-based Tetratherix said he deliberately turned away millions of dollars in potential investment, reducing the biomaterials company's IPO size from $35 million to $25 million ahead of its ASX listing on Monday.
The biomaterials company, which develops clinical products for bone regeneration, surgical spacing and tissue healing, will issue 8.7 million shares at $2.88 each, giving it a market capitalisation of $145 million under the ticker TTX. Barrenjoey and Morgans are leading the IPO.
Knox said the decision to scale back the raise came after identifying potential investors during the book-build process who "might have been quite fast money" and "didn't really understand the long-term pathway that we're on."
