March 7 (Bloomberg) -- Electrical Geodesics Inc., a U.S. company that makes machines to monitor brain activity, will sell less than half the company for $15 million in an initial public offering on London’s Alternate Investment Market this month.
Co-founders Don Tucker and Ann Bunnenberg will retain a majority stake in the company, based in Eugene, Oregon, Chief Financial Officer Christine Soden said in a telephone interview. The pair own about 90 percent of EGI, with the remainder belonging to employees, Soden said.
The share price hasn’t been set and trading in the shares is expected to begin in late March, Soden said. Proceeds of the offering will be used to increase sales and marketing activities to further establish EGI’s products, to develop new ones, to enable EGI to serve international customers and for working capital, the company said in a statement.
“Over half of our sales have been international,” Tucker said. “The areas of our most rapid growth are worldwide, particularly Europe but also the U.S.”
The company had revenue of $12.5 million last year. It was founded in 1992 at the University of Oregon, where Tucker works. Doctors use its “dense-array” brain-wave monitors, which have more electrodes on the head than conventional technology, in patients with epilepsy, Tucker said. Researchers also use it to study autism, language disorders and dementia, he said.
EGI’s conventional machines cost about $22,000 and the dense-array models cost about $65,000 to $70,000 on average, Bunnenberg and Soden said.
Peel Hunt LLP is EGI’s adviser and broker.
The share sale will be at least the second initial public offering for a health-care company in the U.K. in the last six months. Clinigen Group Plc raised 50 million pounds ($81.3 million) in September to fund the acquisition of new products.
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