IPO Details

• Purpose of IPO:
  CapsoVision plans to raise approximately USD 27.6–30 million by issuing 5.25–5.3 million shares at a price range of USD 5.00–5.50. The net proceeds (~USD 22.8 million) will be used for:

  • AI-powered capsule endoscopy development

  • FDA clearance filing

  • Expansion of clinical studies (including GI and pancreatic cancer)

  This is clearly a growth-driven IPO.

• Oversubscription:
  Pre-IPO indications of interest reached ~USD 19.4 million, covering about 70% of the offering, suggesting solid demand.

IPO Placement & Outstanding Shares

• Placement Size:
  ~5.25 million shares at USD 5.00–5.50 = USD ~27.6 million raised

• Post-IPO Shares Outstanding:
  ~46.09 million shares, after 1-for-3.33 reverse split and preferred share conversion

• First-Day Outlook:
  With only ~11% of shares offered to the public, supply will be limited. A modestly positive debut is expected if demand holds.

 Institutional & Anchor Investors

• Institutional Indications:
  ~38 existing and 45 new investors showed interest (~USD 19.4M in demand)

Investment Bankers & Underwriters

• Lead Bookrunners:

  • Benchmark Company

  • Roth Capital Partners

• Outlook:
  Mid-tier underwriters with healthcare specialization. This could result in moderate day-one performance, not high-flying.

Company Overview

• Business Model:
  CapsoVision develops capsule-based endoscopy devices and supporting software (CapsoCam Plus, CapsoCloud, CapsoView), with an AI layer in development.

• Industry:
  Medical devices—specifically GI imaging and diagnostics, part of the broader medtech and digital health sectors.

• Revenue:
  Pre-revenue or minimal revenue stage

  • Focus is on R&D and clinical expansion

  • Profitability is not near-term

• Cash Burn:
  High due to ongoing product development and regulatory pipeline

Management Team

• Key People:

  • Executive Chairman: Dr. Jin-Yong Zhang

  • CEO: Doug Atkinson

  • CTO: Dr. Jianlu Ma

• All insiders hold equity stakes; none are selling pre-IPO

a) Sector Trends

• Capsule endoscopy is gaining traction as a minimally invasive alternative to colonoscopy

• AI integration in imaging is a key trend across medical diagnostics

b) IPO Timing

• Filed in May 2025, scheduled to debut around July 1, 2025

c) Economic Environment

• Market for early-stage medtech IPOs is mixed; stronger demand exists for those with AI and FDA momentum

d) News & Developments

• CapsoVision is expected to submit a new 510(k) FDA application this year

• Claims to be advancing new applications for pancreatic cancer screening

e) Market Conditions

• Favorable in niche healthcare

• Risk from lack of profitability or major partners

Risk Factors

• Reliance on FDA clearance for product expansion

• R&D and regulatory delays

• High valuation without strong current revenues

• Competitive pressure from established players (e.g., Olympus, Medtronic)

Growth Strategy

• Expand clinical and regulatory approvals

• Launch AI diagnostics software

• Increase global adoption of CapsoCam capsules

• Develop new indications (pancreas, small bowel diseases)

Ownership Structure

• Promoters/founders hold majority pre-IPO stake

• Lock-up for 6 months post-IPO ensures no early selling

Similar IPOs (Same Period)

• Fluxergy Inc. (AI diagnostics – withdrawn)

• Purespring Therapeutics (gene therapy – upcoming)

• Surmodics spinout (Q3 2025)

CapsoVision is one of few AI medtech IPOs in this window.

10-Day Sector Performance

• Medtech names flat to mildly positive

• GI-focused stocks have underperformed broader healthcare by ~2%

• AI-medtech hybrids gaining attention

• IPO Allotment Result

• Finalized at USD 5.25/share

• 70% of shares pre-indicated suggests solid backing

 Investment Verdict

• Estimated Opening Price: USD 5.50–6.25

• Price Action: Likely to trade mildly above IPO price, driven by low float and medtech sentiment

• Subscription Recommendation:

  • Strong long-term potential

  • Short-term speculative

  • Not ideal for income-focused investors due to pre-revenue status

Thank you