Shares of glucose-monitoring specialist Senseonics Holdings Inc. (NYSEMKT:SENS) surged about 18% higher on Friday and ended the session 13.1% higher. The start-up announced a secondary public offering on Thursday and provided pricing details today. Roughly six times the average number of shares traded hands as the market bid the stock about $0.63 higher than the proposed public offering price of $2.15 per share.
It's been less than two years since Senseonics made its stock-market debut. Secondary share offerings this early in a company's life as a publicly traded entity generally signal trouble, but investors appear to be viewing today's announcement as a positive sign.
Although Senseonics has already tapped the equity markets more than once since it became a public company through its merger with ANS Technologies in December 2015, the latest offering will be far less dilutive to existing shareholders.
The company is offering a combined 13.38 million shares to the public and the offering's underwriter. Completing the offering, which is expected to close on August 23, at the proposed price would inflate the company's outstanding share count by around 11%.
At the end of June, Senseonics had about $41.4 million in cash, cash equivalents, and marketable securities on its balance sheet. Devices that allow diabetics to easily monitor their blood glucose levels with their smartphones are popular with patients and their doctors, but the market is becoming somewhat crowded.
In the first half of the year, Sensonics Technology's operations generated $1.4 million in revenue, but operations lost about $24.0 million. The Eversense constant glucose-monitoring systems include a long-lived implantable sensor that appears to have an edge over the competition in terms of accuracy and convenience. If sales don't ramp up fast, though, expect another offering in the quarters ahead.