Shoulder Innovations Stock Jumps 8% On NYSE Debut

Shoulder Innovations Inc. (SI) debuted on the New York Stock Exchange at $15.60 on Thursday.

Shoulder Innovations floated the initial public offering (IPO) with five million shares on offer, at an offer price of $15, intending to raise $75 million from the issue.

At the time of writing, Shoulder Innovations’ shares were hovering around $16.15, rising nearly 8% over the issue price.

According to its filing with the U.S. Securities and Exchange Commission, Shoulder Innovations intends to use $55 million from the proceeds of the IPO towards hiring additional sales representatives and expanding its commercial leadership team.

It also intends to purchase additional instrument sets to support its volume growth and geographical expansion.

Shoulder Innovations also said it plans to use $7.5 million to fund the research and development of its implant systems, and the remainder would go towards its working capital needs and other general corporate purposes.

The company added that it could also use a portion of the proceeds for the acquisition of complementary businesses, products, services, or technologies. It said the IPO proceeds and its existing cash and cash equivalents would be sufficient to fund its operations for at least the next 12 months.

Founded in 2009 by Dr. Steve Gunther and venture capital firm EDF Ventures, Shoulder Innovations is a commercial-stage medical technology company exclusively focused on the shoulder surgical care market.

Morgan Stanley, Goldman Sachs, and Piper Sandler are the joint lead book-running managers for the offering, along with Jefferies. BTIG is the lead manager for the offering.

The company has also granted underwriters an option to purchase up to 750,000 more shares at the issue price of $15.

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