SAN JOSE, CALIFORNIA — Direct-to-consumer hearing aid maker, Eargo, Inc., announced today the pricing of its initial public offering of 7,851,852 shares of its common stock at a public offering price of $18.00 per share. In connection with the offering, Eargo has granted the underwriters a 30-day option to purchase up to an additional 1,177,777 shares of common stock at the initial public offering price, less underwriting discounts and commissions.
The shares are expected to begin trading on the Nasdaq Global Select Market on October 16, 2020 under the ticker symbol “EAR.” The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Eargo, are expected to be approximately $141.3 million, excluding any exercise of the underwriters’ option to purchase additional shares. The closing of the offering is expected to occur on October 20, 2020, subject to satisfaction of customary closing conditions.
J.P. Morgan and BofA Securities acted as lead book-running managers and as representatives of the underwriters for the offering. Wells Fargo Securities and William Blair acted as co-managers for the offering.
Eargo had initially filed in September with the SEC to raise up to $100 million in an initial public offering (IPO).
In July of this year, the company had announced a $71 million series E financing round “to expand commercialization during a period of accelerated consumer demand” for its hearing solutions.
Eargo believes its hearing aids are the first and only virtually invisible, rechargeable, completely-in-canal, FDA regulated, exempt Class I device for the treatment of hearing loss. The company is said to have sold over 42,000 hearing aid systems, net of returns, as of June 30, 2020.
Eargo is a medical device company dedicated to improving the quality of life of people with hearing loss. Eargo developed the Eargo solution to create a hearing aid that consumers actually want to use. Eargo’s innovative product and go-to-market approach address the major challenges of traditional hearing aid adoption, including social stigma, accessibility and cost.