Swedish HealthCap V portfolio company MIPS AB has successfully completed its oversubscribed Initial Public Offering on Nasdaq OMX Stockholm’s main market. The total deal size is EUR 59 million (SEK 570 million) of which the company is raising EUR 15 million (SEK 150 million) in gross proceeds. HealthCap and other major investors committed to sell in the IPO shares corresponding to the remaining EUR 44 million (SEK 420 million) of deal size. In addition, existing major investors have also committed to sell in the potential utilization of the over-allotment option that corresponds to 15% of the offer size.
MIPS AB is a spin-off from the Division of Neuronic Engineering at the Royal Institute of Technology in Stockholm developing a solution applied in safety helmets to prevent or reduce skull and brain injuries by from oblique impacts. HealthCap V made its initial investment in MIPS in March, 2008 and has to date invested EUR 3.4 million for a post-IPO ownership of approximately 9.8%, excluding any sales of shares in the overallotment option. At the IPO price of SEK 46 per share, the market capitalization of the company reaches approximately EUR 120 million (SEK 1,164 million) and the gross multiple on HealthCap’s investment in MIPS is 6.2x.
The shares will commence trading today under the ticker “MIPS”.