Volcano files for $86.25 million IPO

By Jennifer Chiou

New York, March 24 - Volcano Corp. filed for an estimated $86.25 million initial public offering of stock in an S-1 registration with the Securities and Exchange Commission.

JPMorgan is bookrunner with Piper Jaffray as joint lead manager. Bear, Stearns & Co. Inc. and Cowen & Co. are also in the syndicate.

The Rancho Cordova, Calif.-based company develops, manufactures and sells intravascular ultrasound and functional measurement products for vascular and structural heart disease.

The company noted that its largest international market is in Japan.

Volcano said it has registered trademarks for Eagle Eye, Visions, ComboWire, SmartMap, SmartWire and FloWire.

IPO proceeds will be used to expand sales and marketing, to repay some debt, which, as of Dec. 31, stands at $27.2 million, for research and development and general corporate purposes.

Volcano said it had a $9.479 million operating loss on revenues of $91.9 million from product sales in 2005, compared with an operating loss of $11.865 million on revenues of $61.098 million for the same period in 2004.

Currently funds managed by Domain Associates LLC are the largest shareholder with 44.3% of the equity followed by Ferrer Freeman & Co. funds at 12.4%, Johnson & Johnson Development Corp. at 11.1%, funds managed by Caduceus Private Investments at 10.7% and Medtronic, Inc. with 7.6%.

The company has applied to list its stock on the Nasdaq National Market under the symbol "VOLC".

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