Initial public offering on deck
By AVRUM D. LANK
alank@journalsentinel.com
Posted: May 4, 2007
TomoTherapy Inc., a fast-growing Madison-based maker of high-tech medical equipment, is expected to join the ranks of public companies next week when it completes an initial public offering.
Tomo filed documents in February with the U.S. Securities and Exchange Commission, saying it expected to sell about $200 million worth of stock to the public. According to The Associated Press, an offering of 10.9 million shares priced between $15 and $17 each is expected to be made next week. That would raise between $163.5 million and $185.3 million. The shares are expected to trade on the Nasdaq market.
Tomo was started 10 years ago and now employs about 500 people making radiation therapy equipment. Its systems help doctors calculate the best way to deliver radiation to a tumor. As a result, the beams of radiation can be directed very precisely, leaving more healthy surrounding tissue than with other methods.
A survey of cancer physicians by a Morgan Stanley analyst has estimated that Tomo equipment eventually could capture 26% of its market.
Tomo has a 66,000-square-foot manufacturing plant in Madison and a backlog of $164 million in orders as of Dec. 31, according to the SEC filing.
