Monogram Orthopaedics (NASDAQ:MGRM) stock is ripping higher on Thursday as it makes its public debut. Trading under MGRM stock, shares are currently up more than 50% from the offering price.
While 2023 may not be a banner year for new initial public offerings (IPOs), that didn’t stop investors from gobbling this stock up. Shares started trading shortly after 11:00 a.m. Eastern. That said, it’s got many other investors wondering what Monogram is and what it does.
According to the company, Monogram sells itself on “Better Robotics. Better Implants. Better Knee Replacements.” More specifically:
“Our system will marry custom, 3D-printed implants tailored to each patient’s anatomy with the robotic precision needed to install them. Thanks to our technology, our patients will have a more stable, better-fitting knee replacement with fewer incisions.”
Shares opened for trading at $10.15, up significantly from the $7.25 offer price it settled on on Wednesday night. The company sold 2.4 million shares at the offer price, raising $17.2 million in the process.
A Different Type of IPO
The company made its public debut via a Regulation A+ IPO. For those unaware, it’s “a type of offering created under the JOBS Act to give small companies better access to capital.” Some other Regulation A+ IPO debuts also include Chicken Soup for the Soul Entertainment (NASDAQ:CSSE) and Knightscope (NASDAQ:KSCP).
Those stocks also command low market capitalizations, at just $41 million and $25.5 million, respectively. That said, these stocks have struggled badly over the past year or so.
4 More Things to Know About MGRM Stock
Today’s opening print in MGRM stock was the lowest price printed for the day. At the session high of $13.86, shares were up 91%. For the stock to double from the offer price, shares need to hit $14.50.
It’s reported that there are around 1.7 million knee replacement surgeries each year in the US. Yet, despite the large number of surgeries per year, the dissatisfaction rate is relatively high, at around 20%.
Much like technology is revolutionizing other industries, it’s expected to do so for this procedure as well. According to CEO Benjamin Sexson: “By 2027, 50% of knee replacement surgeries will be conducted robotically.”
One last thing to note: “Monogram is currently the sole company offering FDA-approved, 3D-printed, patient-specific implants that will eventually be placed using active milling robots.”
So while the company is relatively small, it could carve out a solid position within this space.
On the date of publication, Bret Kenwell did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
