Medical Aesthetic Devices Manufacturer InMode Gearing Up for Nasdaq IPO

Israel-based InMode Aesthetic Solutions Ltd. is gearing up for a Nasdaq initial public offering, looking to raise around $100 million according to a company valuation of $400 million to $500 million, two people familiar with the matter told Calcalist on condition of anonymity. The company has already chosen an underwriter, they added.

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InMode develops medical aesthetic devices using radio-frequency energy technology, which can penetrate subdermal fat. The company's main markets are Europe and the U.S., and it has an annual turnover of around $100 million with an annual growth of 10%, according to the people familiar with the matter. The company is headquartered in Lake Forest, California, with a research and development center in Israel and offices in Canada.

One of InMode's investors is the Guangzhou Sino-Israel Biotech Investment Fund (GIBF), which is backed by the Guangzhou municipality. Founded in 2016, the fund, composed of both Chinese and Israeli professionals, helps its portfolio companies enter the Chinese market. Since its investment in InMode, the medtech company set up a limited presence in China.

InMode was founded as Invasix in 2008 by CEO and chairman Moshe Mizrahi, one of the founders of Israel-based medical device company Syneron Medical Ltd. After Syneron went public in 2005 according to a company valuation of $260 million, Mizrahi retired from the company and became an active angel in the Israeli life sciences ecosystem, investing in over 20 local startups. In 2006 he co-founded home aesthetics device developer Home Skinovations Ltd., which he previously tried to list according to a $300 million company valuation before backtracking.

Other than InMode and Syneron, there are two other prominent Israeli companies in the industry. Israel-based medical and aesthetic laser company Lumenis Ltd., founded by Syneron co-founder Shimon Eckhouse, was acquired by London-based private equity firm XIO Group in 2015 for a little over $500 million. Xio is currently in the process of selling Lumenis to CVC Capital Partners and a Chinese partner. Israel-based aesthetic laser company Alma Lasers was acquired in 2013 by Shanghai-based Fosun Group, which paid $240 million for a 95% stake and in 2017 floated it on the Hong Kong Exchange as Sisram Medical. Syneron was acquired in 2017 by London-based private equity firm Apax Partners Worldwide LLP for $397 million.