Masimo: A patient-sensor specialist with a quarter-billion dollar IPO

(UPDATED: See below.)

Masimo, an Irvine, Calif., maker of non-invasive patient-monitoring products, expects to raise nearly a quarter-billion dollars in an IPO. (The company’s latest filing statement is here.) That IPO take is almost $100 billion higher than Masimo first proposed when it filed the offering on April 17, and would value the company at almost $1 billion — $950.7 million, to be exact, if the offering prices at the upper end of its range.

It’s worth noting, however, that Masimo isn’t going to capture but a fraction of those proceeds. While the company is registering 13.7 million shares for sale, it is issuing only 1.5 million shares itself. Another 10.4 million shares are held by selling stockholders, who will hold onto the resulting funds, and a further 1.8 million are reserved for overallotment sales. Given that Masimo hopes to price the offering between $16 and $18 per share, it can pull down, at most, only $59.4 million. Which is still a nice chunk of change, but not quite as eye-catching as the initial figures seemed to suggest.

Masimo isn’t your typical venture business. Founded in 1989, the company focused on a new technology for measuring oxygen levels in blood known as pulse oximetry. Masimo launched its first products in 1996, and now makes a variety of bedside, handheld and remote monitors, as well as those sensors that a doctor might clip onto your fingertip or toe while you’re in the hospital or undergoing an outpatient procedure. The company posted revenue of $244.3 million last year, and has been profitable for two years.

Masimo’s major non-executive shareholders include Invesco Private Capital, Moore Capital Management, DSV Partners IV Limited Partnership, and entities associated with Franklin Templeton Group.

UPDATED: Rewritten in sections to clarify the distinction between Masimo’s issued shares and those of selling stockholders and to include the total post-offering valuation for the company.