Strong ASX debut for Lumos Diagnostics after $63m IPO

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A strong debut on the ASX for Lumos Diagnostics (ASX:LDX) with its shares performing strongly on its first day as a publicly traded company.

Melbourne-based Lumos Diagnostics is focused on rapid diagnostic test technology and raised $63 million via its initial public offering (IPO). It has R&D, commercial and manufacturing operations in the US.

The business was founded in 2015 by leading Australian health technology and commercialisation business Planet Innovation and expanded in 2019 when it merged with Florida-based Rapid Pathogen Screening.

The company said the IPO attracted strong support from institutional funds and its existing investors, including Australian Unity Future of Healthcare Fund, Perennial, Soul Pattinson and Ellerston.

Lumos CEO Rob Sambursky said, “Receiving support from so many institutional investors reflects the underlying strength of Lumos’ business and technology platforms. The funds raised via the IPO will facilitate the continued expansion and commercialisation of our suite of rapid diagnostic products that have the potential to transform point of care diagnostics for the benefit of clinicians, patients and the health system as a whole.”

The company said it is forecasting financial year 2021 pro forma revenue of $23.765 million from its two complementary business divisions, product sales and commercial services.

The company’s lead branded products are FebriDx, a finger prick test that can differentiate between bacterial and viral respiratory infections and has received regulatory approval in Europe, Canada and Australia, and CoviDx, a COVID-19 antigen test that is approved for sale in Europe.

Lumos also has a pipeline of complementary tests it says will leverage similar distribution channels subject to successful development and receipt of necessary regulatory approvals.

“Lumos has established a strong foundation for growth since the company’s inception. The successful completion of our IPO will allow us to advance into the next phase of commercialisation of our products and commercial services," said executive chair, Sam Lanyon. “We are pleased to receive the ongoing support from existing investors and welcome a new group of investors to our register.”

The offer was fully underwritten by Joint Lead Managers, Bell Potter Securities Limited and Wilsons Corporate Finance. Blackpeak Capital acted as the company’s financial adviser and Clayton Utz acted as the company’s Australian legal adviser.