Outset Medical Prices Equity Offering At $53.50 Per Share

Outset Medical Inc OM has priced an underwritten public offering of 2.5 million common shares sold by the company and some 3.4 million shares sold by certain of its stockholders at $53.50 per share. The offer price is at a 4% discount from the last close price of $55.6 on Thursday.
Underwriters have an option to purchase up to an additional 891,728 shares, and the offering is expected to close on April 13.
The company intends to use the proceeds to expand its sales and support organization, research and development, working capital, and other general corporate purposes.
Morgan Stanley, BofA Securities, and Goldman Sachs & Co. LLC are acting as joint lead book-running managers for the offering. See Form S-1 here.
In Q4, the company reported net revenue of $17.2 million and $49.9 million for FY2020, representing 143% and 231% increases, respectively, over the corresponding periods of 2019.
For FY2021, Outset projects revenue to range from $89 million to $94 million, equivalent to around 78% to 88% Y/Y growth.
For Q1 2021, Outset sees sales in the range of $21 million to $22 million, up approximately 192 to 206% on a Y/Y basis.
Price Action: OM shares are up 0.7% at $55.99 during market trading hours on the last check Friday.

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