Zeltiq Aesthetics Inc., the Pleasanton, California-based maker of fat-reduction technology, climbed as much as 15 percent in Nasdaq trading after raising $91 million yesterday in an initial public offering.
Zeltiq rose 12 percent to $14.59 at 10:43 a.m. New York time on the Nasdaq Stock Market after earlier climbing as high as $15. Yesterday the company, which trades under the symbol ZLTQ, sold 7 million shares at $13 each, according to data compiled by Bloomberg.
Zeltiq had cut its price range on the shares from a planned $14 to $16 apiece. At least 70 companies have withdrawn or postponed U.S. IPOs this year, the most since the comparable period in 2008, Bloomberg data show. Ubiquiti Networks Inc. raised $105.6 million last week in the first IPO in more than a month. Through yesterday, the stock had risen 27 percent since the offering.
Zeltiq offers a method using so-called controlled cooling to reduce fat bulges that can’t be eliminated through dieting or exercise, according to a regulatory filing. The company received U.S. Food and Drug Administration approval last year to market the method, called CoolSculpting, for fat reduction on the part of the body commonly known as “love handles.”
The procedure has also been approved in 46 international markets, where its use is typically not limited to a specific body part, according to the filing.
Revenue in the six months ended June 30 more than quadrupled to $31.6 million from a year earlier, while the net loss narrowed to $1.4 million from $8.5 million, according to the filing.
Zeltiq said it plans to use proceeds from the IPO to pay outstanding licensing fees and for research and development.The offering was led by JPMorgan Chase & Co. and Goldman Sachs Group Inc.