Carlsmed IPO: Shares in Carlsmed, a pioneer in AI spine surgery, become available

Shares of Carlsmed, a provider of specialized artificial intelligence-based equipment and software for personalized spine surgeries, have become available to investors on the Freedom customer trading system. The securities are listed under the ticker symbol CARL. They will appear on the Nasdaq exchange in a few hours;

California-based Carlsmed placed 6.7 million shares of common stock at $15 per share -exactly in the middle of the proposed range. It thus raised about $100.5 million. The company has granted the underwriters a 30-day option to purchase up to 1.005 million additional shares, which, if exercised, could increase total proceeds.

Including the offering price, Carlsmed's capitalization was nearly $400 million, Bloomberg calculated.

The listing was organized by BofA Securities, Goldman Sachs and Piper Sandler.

Carlsmed uses AI to prepare spine surgeries and create customized 3D implants that perfectly match a patient's anatomy. The company's platform, Aprevo, allows a surgeon to pre-model the surgery, take into account the specifics of the spine and print a unique implant on a 3D printer. This reduces the number of repeated interventions and speeds up patient recovery.

The technology is already in active use, with more than 170 surgeons having performed one or more procedures using the company's platform as of the end of March 2025, up from about 100 a year ago. Carlsmed plans to use the funds raised in the IPO to scale the current program, as well as enter the cervical surgery market in 2026. Carlsmed's IPO will be used to expand the program to include cervical surgery;

Last year, Carlsmed's revenue was $27.2 million, nearly doubling from 2023, according to a listing application. For the first three months of 2025, the company posted a net loss of $5.7 million, up 6% from the same period a year earlier.

According to Freedom analyst Alem Bektemirov, the company's revenue could reach $1.2 billion by 2034, with a margin of 25-32%. Given this forecast, the fair value of Carlsmed's shares, according to Freedom, may reach $21.4, which implies a 43% growth potential relative to the offering price. Among the risks for the business he also mentioned high competition in the market, including with such giants as Medtronic and Johnson & Johnson.

Carlsmed is seeing impressive revenue expansion but faces a number of fundamental risks typical of early-stage growth, warns Donovan Jones, head of analyst services at IPO Edge.  "The company is entering a moderately growing spine surgery market with prospects for international expansion and expansion. Revenue growth is strong, but operating losses remain." The technology looks promising, especially against the backdrop of the personalized medicine trend, the analyst said. But investors should consider the vulnerability of supply chains, lack of product diversification and dependence on the regulatory environment.

Carlsmed's IPO reflects a resurgence of interest in medical technology in the public markets. For example, in June Caris Life Sciences, which uses AI to study DNA and create personalized cancer treatment plans, raised $494 million in its IPO, selling 23.5 million shares at $21 per paper. The company's securities are now trading above $30. Beta Bionics, a developer of solutions for diabetics, and Kestra Medical, a manufacturer of wearable cardiac devices, also went public in the first quarter.

Plans to list have been announced by medical products provider Medline. One of the world's largest medical device developers, Medtronic plans to spin off its diabetes division into a separate company, possibly followed by a stock offering.

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Freedom clients will be able to trade in Carlsmed shares before the opening of the main exchange session. Trading will begin in the early pre-market format 2-3 hours before the opening of the US exchanges (from 15:30-16:30 Astana time). To participate, click on the ticker CARL.

This article was AI-translated and verified by a human editor