By Roshan Thomas and Nikita Maria Jino
Dec 5 (Reuters) – Australian-listed shares of Saluda Medical dropped nearly 45% on Friday in the company’s debut on the Australian Securities Exchange after raising A$231 million ($152.67 million) in its initial public offering.
Saluda, a U.S.-based medical device company developing neuromodulation treatments for chronic neurological conditions, sold 87.1 million new CHESS Depositary Interests at A$2.65, valuing the company at about A$775 million at listing.
The stock lost almost half of its value as it fell to A$1.48 in the first few minutes of trading and was down 43% as of 0121 GMT.
“Saluda’s slide shows investors remain highly selective when it comes to high-growth but capital-intensive healthcare names, especially when profitability sits too far over the horizon,” said Hebe Chen, market analyst at Vantage Markets.
“In this market, ‘growth story’ isn’t enough, tangible profitability has become the new premium,” Chen added.
Founded in Sydney in 2010, Saluda has developed the FDA-approved Evoke spinal cord stimulation (SCS) system, a closed-loop platform that measures and adapts therapy using neural biomarkers in real time.
Neuromodulation treatments use targeted electrical or magnetic stimulation to alter nerve activity and relieve symptoms in chronic neurological conditions such as pain, movement disorders, or epilepsy.
Australia’s subdued IPO market prompted regulators to introduce new rules earlier this year to speed up filings and help revive listing activity.
The decline of Saluda in the session “signals that the IPO window may be technically open, but it isn’t warm, investors are demanding clearer visibility, faster pathways to earnings, and disciplined valuations,” Chen said.
However, Saluda reaffirmed its FY26 revenue forecast of $81.9 million on Friday, citing growth in active implanting physicians and rising patient implant volumes.
Saluda’s debut comes on the heels of GemLife Communities Group’s A$750 million IPO in early July, the biggest 2025 listing in Australia, which surpassed the country’s second-largest airline Virgin Australia’s A$685 million offering in late June.
($1 = 1.5131 Australian dollars)
(Reporting by Roshan Thomas in Bengaluru; Editing by Alan Barona)
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