Another big win for StartEngine investors!
In an interesting investor update sent out, it seems Monogram Orthopaedics is “gearing up” for an IPO on the public markets! While I wouldn’t expect this anytime soon, they have noted they are taking “concrete steps” towards a public listing, as shown below.
Now, this process can take as much as a year, and really doesn’t guarantee anything. Right now, it seems market sentiment is shifting in a more favorable light in the short term, as investors hope for a rebound. If this is the case, and the market does start to turn around, right now very well could be a great time to IPO. There are various predictions of a coming recession, and the broader market picture definitely doesn’t look great right now, so it’s ultimately anyone’s guess.
However, I don’t see this IPO happening anytime soon, or even likely won’t be in 2022. They are currently raising more money and will then use that money to move towards an IPO. Amidst all of this, they are working on seeking various FDA approvals, so they might try and time it to go public leading into FDA approval, as the market HEAVILY rewards companies that successfully complete FDA approval. This can cause a company's stocks to shoot up several hundred percent, and if a stock is rising, then that’s easy and abundant funding for the company.
Seeing that they are just announcing this for the first time, it’s likely they will haven’t taken any substantive steps in the process, but more on that might be coming out soon. While an IPO takes at least 6 weeks to complete, many companies prepare for that for up to a year. This is because there’s a large list of requirements that need to be met, and each requirement can easily take months to complete. They said they approached an investment bank in June to move towards an IPO, so it’s likely this is in the very early stages.
Their current share price is $10.01, or a valuation of approximately $120 million. They haven’t disclosed any potential share price and likely won’t until weeks before their IPO. However, their IPO price likely won’t be significantly higher than that unless they have some significant updates prior to their IPO. Since they are currently in their Series D/E stage, there won’t be too many more raises to increase their share price, and unless they have some massive updates, anything too high in the current market would just result in a freefall. It’s likely it will be somewhere in the $12–20 range to give current investors a slight premium on their shares but as to not kill their IPO momentum. Obviously, something like FDA approval, a large influx of demand or revenue, and similar updates could help that premium, but they could just as well wait for those announcements for when they IPO to help their share price.
Their StartEngine raise
While StartEngine investors won’t be sitting on massive gains like some might expect from these types of pre-IPO investments, there are still some gains on the table. They raised on StartEngine last year, which ended in February of 2022.
They raised a whopping $23 million, and their share price was $7.52. This means StartEngine investors will get at least 25% gains from the IPO given their current share price, and that could easily bump up to 50–100% if they IPO a bit higher. Again, not the largest gains but not bad for as little as 1 year of investing in the company.