Heartflow's Successful IPO: AI-Driven Medtech Firm Valued at $2.27 Billion in Nasdaq Debut

Bain Capital-backed Heartflow valued at $2.27 billion in solid Nasdaq debut

Aug 8 (Reuters) - Medtech firm Heartflow (HTFL.O), opens new tab was valued at $2.27 billion on Friday, with its shares surging 47.4% in the Nasdaq debut, as the IPO market gathers momentum and outrides tariff worries. The shares opened at $28 and went as high as $31.5, signaling robust investor appetite for companies leveraging artificial intelligence for healthcare. Heartflow sold about 16.67 million shares at $19 each in its IPO on Thursday, raising $316.7 million. The Bain Capital-backed company's debut comes as expectations of a softer trade policy and lower interest rates boost investor sentiment, which had nosedived after U.S. tariffs in April stoked recession fears. The market sentiment reflects "nervous excitement", said Matt Kennedy, senior strategist at IPO-focused research and ETFs provider Renaissance Capital. "We saw a spike in volatility last week, but at the same time stocks (are) flying up on AI-driven earnings blowouts." Space tech startup Firefly Aerospace (FLY.O), opens new tab and design software firm Figma (FIG.N), opens new tab saw stellar first-day reactions in recent days, strengthening prospects for tech-focused companies to go public. Heartflow's first-day pop could help boost market perception for other medtechs, which often rely on vast research and development expenditure, with clinical testing further pressuring the bottom line. Beta Bionics (BBNX.O), opens new tab and Kestra Medical (KMTS.O), opens new tab had solid debuts earlier this year, but are now trading below their IPO price, like most medtech IPOs of the past year. "If investors keep losing, they just won't show up and companies will struggle to raise IPO funding," Kennedy added, referring to underwhelming post-listing performance from several medtech IPOs in the past year. Founded in 2007, Heartflow helps physicians diagnose and treat heart disease. Its AI-enabled products can create a personalized 3D model of a patient's heart via a single specialized scan. The company's revenue rose 39% in the quarter ended March 31 from a year ago. Its losses, however, widened 55% to $32.35 million during the same period. Reporting by Rishab Shaju and Ateev Bhandari in Bengaluru; Editing by Arun Koyyur and Shreya Biswas Our Standards: The Thomson Reuters Trust Principles., opens new tab

Heartflow raises $316.7 million in US IPO as medtech listings attempt comeback

Aug 7 (Reuters) - Medical technology firm Heartflow said on Thursday it had raised $316.7 million in its U.S. initial public offering, setting the stage for its Nasdaq debut in another test of investor appetite for medical tech companies. The Mountain View, California-based company sold 16.67 million shares at $19 each, compared with a targeted range of $17 to $18 apiece. It upsized its offering and raised the proposed range earlier this week reflecting strong demand. The IPO valued the company at $1.54 billion. U.S. IPOs have picked up pace in a much-awaited recovery, as solid tech earnings and progress on trade deals have helped restore investor confidence. Strong recent debuts mark a reversal from early April, when uncertainty around U.S. President Donald Trump's tariffs paused dealmaking. Heartflow's stock will begin trading on the Nasdaq on Friday under the "HTFL" ticker symbol. The closing of the offering is expected on August 11. J.P. Morgan, Morgan Stanley and Piper Sandler are the lead underwriters for the offering. Following software firm Figma's (FIG.N), opens new tab blowout debut last week, analysts expect companies with a compelling growth story to be welcomed by the public markets. "We expect Heartflow to be well received at launch, especially following Figma's breakout success, which has helped reset sentiment toward high-growth names," IPOX CEO Josef Schuster said. Bain Capital-backed Heartflow leverages AI to create 3D models of the heart via a single specialized scan, improving detection and treatment of coronary artery disease (CAD). As AI gains widespread acceptance, companies embedding it into workflows for meaningful use cases are catching investor attention, with the technology powering gains across various Big Tech businesses. Heartflow's revenue grew 39% for the quarter ended March 31 from a year earlier. Its platform to detect CAD was used in 132,000 patients in 2024. Reporting by Ateev Bhandari, Pritam Biswas and Surbhi Misra in Bengaluru; Editing by Alan Barona Our Standards: The Thomson Reuters Trust Principles., opens new tab

Medtech Heartflow valued at $2.27 billion in solid Nasdaq debut

Aug 8 (Reuters) - Heartflow (HTFL.O), opens new tab shares surged 47.4% in their Nasdaq debut on Friday, giving the medtech firm a valuation of $2.27 billion, as the IPO market gathers momentum and outrides tariff worries. The stock opened at $28, compared with the IPO price of $19, signaling robust investor appetite for revenue-positive companies leveraging artificial intelligence for healthcare. Heartflow sold about 16.67 million shares in its IPO on Thursday and raised $316.7 million. Its raised marketed price was $17 to $18 per share. The Bain Capital-backed company's solid market debut comes as expectations of a softer trade policy and lower interest rates boost investor sentiment, which had nosedived after U.S. tariffs in April stoked recession fears. Space tech startup Firefly Aerospace (FLY.O), opens new tab and design software firm Figma (FIG.N), opens new tab saw stellar first-day reactions in recent days, strengthening prospects for tech-focused companies to go public. Heartflow's first-day pop could help boost market perception for future medtech IPOs. Beta Bionics (BBNX.O), opens new tab and Kestra Medical (KMTS.O), opens new tab had solid debuts earlier this year, but are now trading below their IPO price, like most medtech IPOs of the past year. Reporting by Rishab Shaju and Ateev Bhandari in Bengaluru; Editing by Arun Koyyur and Shreya Biswas Our Standards: The Thomson Reuters Trust Principles., opens new tab

Bain Capital-backed Heartflow valued at $2.27 billion in solid Nasdaq debut - The Economic Times

The shares opened at $28 and went as high as $31.5, signaling robust investor appetite for companies leveraging artificial intelligence for healthcare. Heartflow sold about 16.67 million shares at $19 each in its IPO on Thursday, raising $316.7 million.Medtech firm Heartflow was valued at $2.27 billion on Friday, with its shares surging 47.4% in the Nasdaq debut, as the IPO market gathers momentum and outrides tariff worries. The shares opened at $28 and went as high as $31.5, signaling robust investor appetite for companies leveraging artificial intelligence for healthcare. Heartflow sold about 16.67 million shares at $19 each in its IPO on Thursday, raising $316.7 million. The Bain Capital-backed company's debut comes as expectations of a softer trade policy and lower interest rates boost investor sentiment, which had nosedived after U.S. tariffs in April stoked recession fears. The market sentiment reflects "nervous excitement", said Matt Kennedy, senior strategist at IPO-focused research and ETFs provider Renaissance Capital. "We saw a spike in volatility last week, but at the same time stocks (are) flying up on AI-driven earnings blowouts." Space tech startup Firefly Aerospace and design software firm Figma saw stellar first-day reactions in recent days, strengthening prospects for tech-focused companies to go public. Heartflow's first-day pop could help boost market perception for other medtechs, which often rely on vast research and development expenditure, with clinical testing further pressuring the bottom line. Beta Bionics and Kestra Medical had solid debuts earlier this year, but are now trading below their IPO price, like most medtech IPOs of the past year. "If investors keep losing, they just won't show up and companies will struggle to raise IPO funding," Kennedy added, referring to underwhelming post-listing performance from several medtech IPOs in the past year. Founded in 2007, Heartflow helps physicians diagnose and treat heart disease. Its AI-enabled products can create a personalized 3D model of a patient's heart via a single specialized scan. The company's revenue rose 39% in the quarter ended March 31 from a year ago. Its losses, however, widened 55% to $32.35 million during the same period.

UPDATE 2-Heartflow raises $316.7 million in US IPO as medtech listings attempt comeback

(Changes headline, adds analyst comments and details from paragraph 8 onwards) Aug 7 (Reuters) - Medical technology firm Heartflow said on Thursday it had raised $316.7 million in its U.S. initial public offering, setting the stage for its Nasdaq debut in another test of investor appetite for medical tech companies. The Mountain View, California-based company sold 16.67 million shares at $19 each, compared with a targeted range of $17 to $18 apiece. It upsized its offering and raised the proposed range earlier this week reflecting strong demand. The IPO valued the company at $1.54 billion. U.S. IPOs have picked up pace in a much-awaited recovery, as solid tech earnings and progress on trade deals have helped restore investor confidence. Strong recent debuts mark a reversal from early April, when uncertainty around U.S. President Donald Trump's tariffs paused dealmaking. Heartflow's stock will begin trading on the Nasdaq on Friday under the "HTFL" ticker symbol. The closing of the offering is expected on August 11. J.P. Morgan, Morgan Stanley and Piper Sandler are the lead underwriters for the offering. Following software firm Figma's blowout debut last week, analysts expect companies with a compelling growth story to be welcomed by the public markets. "We expect Heartflow to be well received at launch, especially following Figma's breakout success, which has helped reset sentiment toward high-growth names," IPOX CEO Josef Schuster said. Bain Capital-backed Heartflow leverages AI to create 3D models of the heart via a single specialized scan, improving detection and treatment of coronary artery disease (CAD). As AI gains widespread acceptance, companies embedding it into workflows for meaningful use cases are catching investor attention, with the technology powering gains across various Big Tech businesses. Heartflow's revenue grew 39% for the quarter ended March 31 from a year earlier. Its platform to detect CAD was used in 132,000 patients in 2024. (Reporting by Ateev Bhandari, Pritam Biswas and Surbhi Misra in Bengaluru; Editing by Alan Barona)

Bain Capital-backed Heartflow valued at $2.27 billion in solid Nasdaq debut

(Reuters) -Medtech firm Heartflow was valued at $2.27 billion on Friday, with its shares surging 47.4% in the Nasdaq debut, as the IPO market gathers momentum and outrides tariff worries. The shares opened at $28 and went as high as $31.5, signaling robust investor appetite for companies leveraging artificial intelligence for healthcare. Heartflow sold about 16.67 million shares at $19 each in its IPO on Thursday, raising $316.7 million. The Bain Capital-backed company's debut comes as expectations of a softer trade policy and lower interest rates boost investor sentiment, which had nosedived after U.S. tariffs in April stoked recession fears. The market sentiment reflects "nervous excitement", said Matt Kennedy, senior strategist at IPO-focused research and ETFs provider Renaissance Capital. "We saw a spike in volatility last week, but at the same time stocks (are) flying up on AI-driven earnings blowouts." Space tech startup Firefly Aerospace and design software firm Figma saw stellar first-day reactions in recent days, strengthening prospects for tech-focused companies to go public. Heartflow's first-day pop could help boost market perception for other medtechs, which often rely on vast research and development expenditure, with clinical testing further pressuring the bottom line. Beta Bionics and Kestra Medical had solid debuts earlier this year, but are now trading below their IPO price, like most medtech IPOs of the past year. "If investors keep losing, they just won't show up and companies will struggle to raise IPO funding," Kennedy added, referring to underwhelming post-listing performance from several medtech IPOs in the past year. Founded in 2007, Heartflow helps physicians diagnose and treat heart disease. Its AI-enabled products can create a personalized 3D model of a patient's heart via a single specialized scan. The company's revenue rose 39% in the quarter ended March 31 from a year ago. Its losses, however, widened 55% to $32.35 million during the same period. (Reporting by Rishab Shaju and Ateev Bhandari in Bengaluru; Editing by Arun Koyyur and Shreya Biswas)