Benzinga | Apr 9, 2021 09:56AM EDT

Outset Medical Prices Equity Offering At $53.50 Per Share

* Outset Medical Inc (NASDAQ: 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.