3-D printer Materialise slated to price $104M IPO

Belgian 3-D printer Materialise is planning a $104 million IPO on NASDAQ during the week of June 23. Medical devices account for much of its revenue, but it also does industrial work.

Materialise printed more than 146,000 customized, patient-specific medical devices in 2013 and more than 35,000 during the first quarter. These include joint replacement products and craniofacial implants. Most of these were distributed through partners including Biomet, DJO Surgical, Synthes and Zimmer ($ZHM).

"One of the biggest strengths of additive manufacturing is its possibility to create unique products cost-effectively, to do mass customization, and that is especially relevant for the medical sector," said Materialise founder and CEO Wilfried Vancraen on the IPO road show.

"We developed the first real interface between medical image data and the 3-D printers," Vancraen added. "This combination has led to the many innovations that 3-D printing is bringing to the medical sector. It started by printing organs as so-called medical models, but soon it evolved into printing patient-specific medical instruments and today even highly functional, patient-specific medical implants."

The company had an installed medical software base at March 31 with 1,200 customers: 46% of these were academic institutions; 32% were medical device companies; 14% were hospitals; and 8% were in other markets.

Materialise is already profitable; it expects to use IPO funds to expand its 3-D printing center capacity and make acquisitions as well as to expand sales and marketing and R&D efforts. About 41% of its 2013 revenues came from the medical segment, while industrial production accounted for 40%. Materialise had $94.7 million in 2013 revenues. Last year, it had a net profit of $4.7 million.

In the IPO, the company hopes to sell 8 million shares with a proposed price range of $12 to $14 each. An additional 1.2 million shares may be sold by selling shareholders in the overallotment. Vancraen controls 85.6% of pre-IPO shares. Piper Jaffray and Credit Suisse are the lead bankers on the deal.

- here is the Materialise IPO prospectus filed with SEC
- and here you can find a video of its IPO road show

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